Taxpayers who receive Form 1099-INT or Form 1099-DIV may have amounts reported indicating that foreign taxes have been paid on their behalf by the issuer of the document.
Taxpayers can elect to report foreign tax without filing Form 1116 as long as the following conditions are met.
If the foreign tax paid is more than $300 ($600 for Married Filing Jointly) or they do not meet the other conditions to make the election, taxpayers must file Form 1116.
Refer taxpayers who must complete Form 1116 because they cannot qualify for the election to a volunteer with an International certification or a professional tax preparer.
A credit for foreign taxes can be claimed only for foreign tax imposed by a foreign country or U.S. possession.
Review the Volunteer Resource Guide, Nonrefundable Credits tab, for more information about Form 1116, claiming the foreign tax credit using the simplified election.