Form 1116 (2009) Page 2
Summary: This is an example of Form 1116 (2008), page 2, which pertains to the text. The line items are completed as follows:
 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
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10. Carryback or carryover (attach detailed computation)
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11. Add lines 9 and 10
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12. Reduction in foreign taxes (see pages 16 and 17 of the instructions)
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13. Subtract line 12 from line 11. This is the total amount of foreign taxes available for credit
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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 16 of the instructions)
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15. Adjustments to line 14 (see pages 16 and 17 of the instructions)
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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.)
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17. Individuals: Enter the amount from Form 1040, line 41 (minus any amount on Form 8914, line 2). If you are a nonresident alien, enter the amount from Form 1040NR, line 38 (minus any amount on Form 8914, line 2). Estates and trusts: Enter your taxable income without the deduction for your exemption
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18. Divide line 16 by line 17. If line 16 is more than line 17, enter 1
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19. Individuals: Enter the amount from Form 1040, line 44. If you are a nonresident alien, enter the amount from Form 1040NR, line 41. Estates and trusts: Enter the amount from Form 1041, Schedule G, line 1a, or the total of Form 990T, lines 36 and 37
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20. Multiply line 19 by line 18 (maximum amount of credit)
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21. Enter the smaller of line 13 or line 20. If this is the only Form 1116 you are filing, skip lines 22 through 26 and enter this amount on line 27. Otherwise, complete the appropriate line in Part IV (see page 20 of the instructions)
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 Under
Part IV: Summary of Credits From Separate Parts III
: 

27. Enter the smaller of line 19 or line 26
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29. Subtract line 28 from line 27. This is your foreign tax credit. Enter here and on Form 1040, line 51; Form 1040NR, line 46; Form 1041, Schedule G, line 2a; or Form 990T, line 40a
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