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    deng's Avatar
    deng Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Apr 9, 2006, 04:40 PM
    Foreign Tax Credit
    Hello,

    I'm a GC holder and I lived in 2005 in the US but I got a small amount of wages and interest from a foreign country. I paid taxes on the foreign interest.

    It seems to be very difficult to fill out necessary forms.

    I don't know if I need to file the form 1116 to claim the foreign tax credit. IRS instructions say that this is possible without filing 1116 if it is a) passive income, b) smaller than $300, and c) I got 1099 or similar substitute payee statement.

    I got only foreign bank statement (in a foreign language) so does it qualify as a "1099 or similar"?

    Is it possible not claim the foreign tax credit (i.e. to have double taxation and lose $50 or so) ? How this should be done? Can I just claim that I did not pay any foreign taxes (I will naturally report all income) ?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Apr 10, 2006, 09:45 AM
    You do NOT have to file Form 1116 if you feel it is not worth the effort.

    Are you using tax software? The software usually makes it rather easy to fill in Form 1116.
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