What is form 1116?

Answer 1

Form 1116 is used by U.S. taxpayers to claim the Foreign Tax Credit, which helps reduce double taxation on income earned abroad. By filing this form, taxpayers can report foreign taxes paid or accrued and calculate the amount of credit they can claim against their U.S. tax liability. This form is essential for individuals who have foreign income and want to avoid being taxed twice on the same income. It is typically filed with the taxpayer's annual income tax return.