For other videos on the Foreign Tax Credit and Form 1116:

How to file Schedule B of Form 1116:    • How to Fill in Schedule B of Form 111...  
Adjustments for Qualified Dividends:    • How to File Form 1116 with Adjustment...  
How to file Form 1116:    • How to File IRS Form 1116 (Foreign Ta...  
Form 1116 and Form 1099DIV:    • IRS Form 1099DIV with Foreign Taxes ...  
Form 1116 with Foreign Compensation:    • How to File IRS Form 1116 for a Forei...  

Form 1116 is filed by U.S. taxpayers to report foreign source income and claim a foreign tax credit against their U.S. tax liability.

In this example, a U.S. taxpayer works in a foreign country and pays foreign income taxes. The U.S. taxpayer is also required to report those foreign source earnings on his Form 1040 and pay U.S. taxes on the same income. Form 1116 is filed to report his general category income and claim a foreign tax credit.

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