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I suggest you reread the Sch A instructions again. There is no requirement that you file the 1116 when you are taking the deduction instead of the credit.

This is from the instructions for Schedule A:

Enter only one total on line 8. Include on this line income tax you paid to a foreign country or U.S. possession.

You may want to take a credit for the foreign tax instead of a deduction. See the instructions for Form 1040, line 47, for details.

This is from the instructions for the 1040, line 47:

If you paid income tax to a foreign country, you may be able to take this credit. Generally, you must complete and attach Form
to do so.

Exception. You do not have to complete Form 1116 to take this credit if all five of the following apply.

4. The total of your foreign taxes was not more than $300 (not more than $600 if married filing jointly).

It sounds to me like I do have to complete Form 1116 because not all of the five requirements apply (tax over $600). Do you have different information or a different interpretation?

Are you carrying forward foreign tax credits from 2007?


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