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    haconc's Avatar
    haconc Posts: 1, Reputation: 1
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    #1

    Mar 19, 2012, 11:45 AM
    Tax treaty / prize
    I am a US citizen and I received an academic prize in Italy, which was taxed at a rate of 25%.
    No official documents where provided to me.
    How do I file this in my 1040 and how do I get credit for the tax that I already paid in Italy? (I know there is a tax treaty between the US and Italy)
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Mar 20, 2012, 01:38 PM
    You claim the income on Line #21 of Form 1040 as "other income".

    You then file Form 1116 to claim the Foreign Tax Credit for the 25% tax you paid to Italy. Since this is passive income, you should get a dollar-for-dollar credit.

    If you want my professional help, double-click on my title above and scroll down to my profile/signature. You will find my email address and websites there.
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