Publication 514: Foreign Tax Credit for Individuals;

This is archived information that pertains only to the 2004 Tax Year. If you
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Form 1116 (2003) Page 2. Summary: This is an example of Form 1116 (2003), page 2, with items included as described in the text. Additionally, these line items are completed:

Under “Part III: Figuring the Credit”:

“9. Enter the amount from line 8. These are your total foreign taxes paid or accrued for the category of income checked above Part I” field contains 500

“10. Carryback or carryover (attach detailed computation)” field contains 0

“11. Add lines 9 and 10” field contains 500

“12. Reduction in foreign taxes (see page 13 of the instructions)” field contains 0

“13. Subtract line 12 from line 11. This is the total amount of foreign taxes available for credit” field contains 500

“14. Enter the amount from line 7. This is your taxable income or (loss) from sources outside the United States (before adjustments) for the category of income checked above Part I (see page 14 of the instructions)” field contains 4,460

“15. Adjustments to line 14 (see page 14 of the instructions)” field contains 0

“16. Combine the amounts on lines 14 and 15. This is your net foreign source taxable income. (If the result is zero or less, you have no foreign tax credit for the category of income you checked above Part I. Skip lines 17 through 21. However, if you are filing more than one Form 1116, you must complete line 19.)” field contains 4,460

“17. Individuals: Enter the amount from Form 1040, line 38. If you are a nonresident alien, enter the amount from Form 1040NR, line 36. Estates and trusts: Enter your taxable income without the deduction for your exemption” field contains 25,228

“18. Divide line 16 by line 17. If line 16 is more than line 17, enter 1” field contains .1768

“19. Individuals: Enter the amount from Form 1040, line 41. If you are a nonresident alien, enter the amount from Form 1040NR, line 39. Estates and trusts: Enter the amount from Form 1041, Schedule G, line 1a, or the total of Form 990-T, lines 36 and 37” field contains 3,034

“20. Multiply line 19 by line 18 (maximum amount of credit)” field contains 526

“21. Enter the smaller of line 13 or line 20. If this is the only Form 1116 you are filing, skip lines 22 through 30 and enter this amount on line 31. Otherwise, complete the appropriate line in Part IV (see page 16 of the instructions)” field contains 500