Part III
Calculate the Reduction in Foreign Taxes
Use Form 1116, Part III, to apply the overall limitation formula. This determines the maximum amount of a taxpayer's foreign tax credit.
The table has directions for filling in all the lines in Part III.
| Line(s) |
Directions |
9 |
Enter the amount of foreign taxes from Part II, line 8 |
10 |
For foreign taxes transferred from other years, please refer to Publication 514(carryback and carryover) |
12 |
Report the reduction in foreign taxes, if applicable; this is discussed later in this topic |
14-23 |
Calculations to determine the maximum amount of the credit |
24 |
Report the allowable foreign tax credit; this is the lesser of:
- Line 14: Foreign taxes available for credit
- Line 23: The limitation
|
Click here to view Part III of Form 1116.
