Complete Form 1116 if the country you worked in has an agreement, or treaty, with the US regarding the tax treatment of your income. Under the "Income Resourced by Treaty" agreement, all of your income- foreign and US, is considered income from the treaty country when calculating the taxes you owe the foreign country.
You must figure a separate Form 1116 for each treaty country.
Within the program, the amount entered here will show on line 30 of Form 1116.
Where do I report income resourced by treaty?
To enter into the program, please follow the steps listed below.
- Select Federal from the navigation bar
- Select Deductions from the same navigation bar
- Choose to select your forms, then press continue
- Select Credits
- Select Foreign Tax Credit Form 1116
- Choose Income resourced by treaty
Refer to Form 1116 Instructions for more information.