Filing

• In order to claim the credit, taxpayers must complete IRS Form 1116 and attach it to their income tax returns. Corporations should file IRS Form 1118 instead of Form 1116.
  
  

Eligibility

• The credit is available for all U.S. citizens, resident aliens and non-resident aliens whose foreign income is subject to both foreign and U.S. tax. In most cases, you can not claim the credit unless you paid tax to a foreign country.
  
  

Exclusions

• You cannot take the foreign tax credit on taxes for which you only qualify to take an itemized deduction, taxes on international boycott operations, taxes on foreign mineral income or tax on any excluded income.
  
  

Limit

• The total amount of your foreign tax credit cannot be more than your U.S. tax liability.