Under which form do individuals claim a foreign tax credit?

Individuals claim a foreign tax credit using Form 1116. This form is specifically designed for taxpayers who want to claim a credit for income taxes paid or accrued to a foreign country. The purpose of the foreign tax credit is to prevent double taxation, allowing taxpayers to reduce their U.S. tax liability by the amount of foreign taxes they have already paid on the same income.

Form 1116 requires detailed information about the foreign income, the taxes paid to the foreign government, and the calculations involved in determining the credit. This allows the IRS to accurately assess and apply the credit to an individual’s tax return.

The other forms listed serve different purposes: Form 1040 is the standard U.S. individual income tax return, Form 1099 is used for reporting various types of income other than wages, salaries, and tips, and Form 8889 is utilized for reporting Health Savings Accounts (HSAs). Understanding the specific role of Form 1116 in claiming the foreign tax credit is crucial for individuals who have foreign income and pay taxes in other countries.