Form 1116 – Foreign Tax Credit

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Last reviewed: 2025-10-26

Use the Form 1116: Form 1116 – Foreign Tax Credit Tax Form Calculator Form 1116: Form 1116 – Foreign Tax Credit as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 1116 state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.

Form 1116 is used by U.S. taxpayers to claim a credit for income taxes paid to foreign governments. This credit helps prevent double taxation on income earned outside the United States. The form separates income into categories such as passive, general, and re-sourced by treaty, each reported in a dedicated section.Our calculator auto-fills each part of the form and calculates totals for:

Lines 1–6: Types of income and deductions allocated to foreign sources
Line 7: Total income from foreign sources
Lines 8–13: Various expense deductions and adjustments
Line 14: Total adjustments applied
Line 1a_d: Now auto-computed from related fields for accuracy

Use this tool to simplify your foreign tax credit calculations across different income categories.

Foreign Tax Credit
Use a separate Form 1116 for each category of income listed below. See Categories of Income in the instructions. Check only one box on each Form 1116. Report all amounts in U.S. dollars except where specified in Part II below. a Passive category income c Section 901(j) income e Lump-sum distributions b General category income d Certain income re-sourced by treaty
f Resident of (name of country) ▸
Note: If you paid taxes to only one foreign country or U.S. possession, use column A in Part I and line A in Part II. If you paid taxes to more than one foreign country or U.S. possession, use a separate column and line for each country or possession.
Part I. Taxable Income or Loss From Sources Outside the United States (for Category Checked Above)
		Foreign Country or U.S. Possession						Total (Add cols. A, B, and C.)
		A		B		C
g	Enter the name of the foreign country or U.S. possession
1a	Gross income from sources within country shown above and of the type checked above (see instructions):							1a
b	Check if line 1a is compensation for personal services as an employee, your total compensation from all sources is $250,000 or more, and you used an alternative basis to determine its source (see instructions) ▸
Deductions and losses (Caution: See instructions.):
2	Expenses definitely related to the income on line 1a (attach statement)
3	Pro rata share of other deductions not definitely related:
a	Certain itemized deductions or standard deduction (see instructions)
b	Other deductions (attach statement)
c	Add lines 3a and 3b
d	Gross foreign source income (see instructions)
e	Gross income from all sources (see instructions)
f	Divide line 3d by line 3e (see instructions)
g	Multiply line 3c by line 3f
4	Pro rata share of interest expense (see instructions):
a	Home mortgage interest (use the Worksheet for Home Mortgage Interest in the instructions)
b	Other interest expense
5	Losses from foreign sources
6	Add lines 2, 3g, 4a, 4b, and 5							6
7	Subtract line 6 from line 1a. Enter the result here and on line 15, page 2 ▸							7
Part II. Foreign Taxes Paid or Accrued (see instructions)
County	Credit is claimed for taxes (you must check one) (h) Paid (i) Accured	Foreign taxes paid or accrued
		In foreign currency				In U.S. dollars
		Taxes withheld at source on:			(n) Other foreign taxes paid or accrued	Taxes withheld at source on:			(r) Other foreign taxes paid or accrued	(s) Total foreign taxes paid or accrued (add cols. (o) through (r)
	(j) Date paid or accrued	(k) Dividends	(l) Rents and royalties	(m) interest		(o) Dividends	(p) Rents and royalties	(q) Interest
A
B
C
8 Add lines A through C, column (s). Enter the total here and on line 9, page 2 ▸									8
Part III. Figuring the Credit
9	Enter the amount from line 8. These are your total foreign taxes paid or accrued for the category of income checked above Part I						9
10	Carryback or carryover (attach detailed computation)						10
11	Add lines 9 and 10						11
12	Reduction in foreign taxes (see instructions)						12
13	Taxes reclassified under high tax kickout (see instructions)						13
14	Combine lines 11, 12, and 13. This is the total amount of foreign taxes available for credit								14
15	Enter the amount from line 7. This is your taxable income or (loss) from sources outside the United States (before adjustments) for the category of income checked above Part I (see instructions)						15
16	Adjustments to line 15 (see instructions)						16
17	Combine the amounts on lines 15 and 16. This is your net foreign source taxable income. (If the result is zero or less, you have no foreign tax credit for the category of income you checked above Part I. Skip lines 18 through 22. However, if you are filing more than one Form 1116, you must complete line 20.)						17
18	Individuals: Enter the amount from Form 1040, line 41 🖩; or Form 1040NR, line 39. Estates and trusts: Enter your taxable income without the deduction for your exemption Caution: If you figured your tax using the lower rates on qualified dividends or capital gains, see instructions.						18
19	Divide line 17 by line 18. If line 17 is more than line 18, enter “1”								19
20	Individuals: Enter the amounts from Form 1040, lines 44 and 46 🖩;. If you are a nonresident alien, enter the amounts from Form 1040NR, lines 42 and 44. Estates and trusts: Enter the amount from Form 1041, Schedule G, line 1a; or the total of Form 990-T, lines 36, 37, and 39								20
21	Multiply line 20 by line 19 (maximum amount of credit)								21
22	Enter the smaller of line 14 or line 21. If this is the only Form 1116 you are filing, skip lines 23 through 27 and enter this amount on line 28. Otherwise, complete the appropriate line in Part IV (see instructions)								22
Part IV. Summary of Credits From Separate Parts III (see instructions)
23	Credit for taxes on passive category income						23
24	Credit for taxes on general category income						24
25	Credit for taxes on certain income re-sourced by treaty						25
26	Credit for taxes on lump-sum distributions						26
27	Add lines 23 through 26								27
28	Enter the smaller of line 20 or line 27								28
29	Reduction of credit for international boycott operations. See instructions for line 12								29
30	Subtract line 29 from line 28. This is your foreign tax credit. Enter here and on Form 1040, line 48; Form 1040NR, line 46; Form 1041, Schedule G, line 2a; or Form 990-T, line 41a ▸								30

Ensure that the totals align with the income and tax reported on your international income statements and treaties. Each income category must be reported separately, and additional Forms 1116 may be required if you have multiple income types.

Last reviewed: 2025-10-26: If you believe this form requires an update, please contact us.

For faster completion and printable output, use the Form 1116 Calculator. Updated for the 2026 tax year, it reflects the current IRS layout and helps ensure an accurate claim for your foreign tax credit.

Frequently Asked Questions

Why does my EITC decrease as income rises?

EITC increases up to a point, then phases out as income exceeds IRS thresholds.

Why might refund and paycheck calculators differ?

Refund tools account for total year activity; paycheck tools simulate one period’s withholding.

How do rental or K-1 passthrough items flow?

Use Schedule E for rentals/partnerships/S corps and import outcomes here.

Any tool to sanity-check bond vs T-bill yield after tax?

Compare with Bond Yield and T-Bill.

Why did my Social Security withholding stop mid-year?

Once your earnings exceed the Social Security wage base, no further Social Security tax is withheld for that year.

Important Notes

All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.