Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Foreign Tax Credit and Completing Form 1116

Introduction

Welcome!

Welcome to the Foreign Tax Credit and Completing Form 1116 lesson. This lesson discusses the foreign tax credit as it applies to U.S. citizens who:

  • Live in Puerto Rico
  • Have paid or accrued taxes to Puerto Rico on their worldwide income
  • Are subject to U.S. tax on a portion of the same income

The lesson explains the steps for completing Form 1116, Foreign Tax Credit (Individual, Estate, or Trust), which Puerto Rican taxpayers generally must complete to claim the credit.

Note: In this lesson, you'll be asked to calculate answers for practice questions. You may want to have a calculator on hand for assistance.