Instructions For Form 8801 - 2010 (Page 2 of 4) in pdf

If you were born on January 1, 1991, you are considered to

taxable income and exclusion items that are attributable to

be 19 at the end of 2009. This limitation applies to you only if

sources outside the United States. If you had any 2009 foreign

you were a full-time student who did not have earned income

source qualified dividends or foreign source capital gains

that was more than half of your support.

(including any foreign source capital gain distributions) or

losses, use the instructions under Step 3 to determine whether

If you were born on January 1, 1986, you are considered to

you must make adjustments to those amounts before you

be 24 at the end of 2009. This limitation does not apply to you.

include the amounts on line 1a or line 5 of the MTFTCE Form

Line 10

1116.

Step 3. Follow the instructions below, if applicable, to

If you filed Form 1040NR for 2009 and had a net gain on the

determine the amount of foreign source qualified dividends,

disposition of U.S. real property interests, line 10 cannot be less

capital gain distributions, and other capital gains and losses to

than the smaller of that net gain or line 4.

include on line 1a and line 5 of the MTFTCE Form 1116.

Line 11

Foreign qualified dividends. You must adjust your

If for 2009 you claimed the foreign earned income exclusion or

foreign source qualified dividends before you include those

the housing exclusion on Form 2555 or Form 2555-EZ, you

amounts on line 1a of the MTFTCE Form 1116 if:

•

must use the worksheet below to figure the amount to enter on

Line 45 of Form 8801 is smaller than line 46, and

line 11.

•

Line 34 of Form 8801 is greater than zero.

Form 1040NR. If for 2009 you filed Form 1040NR and you

But you do not need to make any adjustments if:

•

reported capital gain distributions directly on Form 1040NR, line

You qualified for the adjustment exception under Qualified

14; you reported qualified dividends on Form 1040NR, line 10b;

Dividends and Capital Gain Tax Worksheet (Individuals),

or you had a gain on both lines 15 and 16 of Schedule D (Form

Qualified Dividends Tax Worksheet (Estates and Trusts), or

1040), complete Part III on page 3 of Form 8801 and enter the

Adjustments to foreign qualified dividends under Schedule D

amount from line 47 on line 11. All others, do not complete Part

Filers, whichever applies, in the Form 1116 instructions when

III. Instead, if Form 8801, line 10, is $175,000 or less ($87,500

you completed your regular tax Form 1116 (or you would have

or less if you checked filing status box 3, 4, or 5 on Form

qualified for that adjustment exception if you had completed a

1040NR for 2009), figure the amount to enter on line 11 by

regular tax Form 1116) for 2009, and

•

multiplying line 10 by 26% (.26). Otherwise, figure the amount

Line 34 of Form 8801 is not more than $175,000 ($87,500 if

to enter on line 11 by multiplying line 10 by 28% (.28) and

married filing separately for 2009).

subtracting $3,500 ($1,750 if you checked filing status box 3, 4,

To adjust your foreign source qualified dividends, multiply

or 5 for 2009) from the result.

your foreign source qualified dividends in each separate

Line 12

category by 0.5357 (instead of 0.4286) if the foreign source

qualified dividends are taxed at a rate of 15%. If you have

If you made an election to claim the foreign tax credit on your

foreign source qualified dividends that are taxed at a rate of 0%,

2009 Form 1040 (or Form 1040NR) without filing Form 1116,

you adjust them by not including them on line 1a of MTFTCE

enter on Form 8801, line 12, the amount from your 2009 Form

Form 1116. Include the results on line 1a of the applicable

1040, line 47 (or Form 1040NR, line 44). Otherwise, the

MTFTCE Form 1116. But do not adjust the amount of any

minimum tax foreign tax credit on exclusion items (MTFTCE) is

foreign source qualified dividend you elected to include on line

your 2009 AMT foreign tax credit (AMTFTC) refigured using

4g of Form 4952.

only exclusion items. Follow these steps to figure your

Individuals with capital gain distributions only. If you

MTFTCE.

had no 2009 capital gains or losses other than capital gain

Step 1. Use a separate 2009 Form 1116 for the MTFTCE for

distributions from box 2a of Form(s) 1099-DIV or substitute

each separate category of income specified at the top of Form

statement(s), you must adjust your foreign source capital gain

1116.

distributions before you include those amounts on line 1a of the

When applying the separate categories of income, use the

MTFTCE Form 1116 if you are required to adjust your foreign

applicable AMT rate instead of the regular tax rate to determine

source qualified dividends under the rules just described or you

if any income is “high-taxed.”

would be required to adjust your foreign source qualified

dividends if you had any.

Step 2. If you figured your 2009 AMTFTC using the simplified

limitation election, skip Part I and enter on the MTFTCE Form

To adjust your foreign source capital gain distributions,

1116, line 16, the same amount you entered on that line for the

multiply your foreign source capital gain distributions in each

2009 AMT Form 1116. Otherwise, complete Part I using only

separate category by 0.5357 (instead of 0.4286) if the foreign

Foreign Earned Income Tax Worksheet—Line 11

Keep for Your Records

Before you begin:

If Form 8801, line 10, is zero, do not complete this worksheet.

1. Enter the amount from Form 8801, line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. Enter the amount from your (and your spouse’s if filing jointly) 2009 Form 2555, lines 45 and 50, or 2009 Form

2555-EZ, line 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

}

4. Tax on the amount on line 3.

•

If for 2009 you reported capital gain distributions directly on Form 1040, line 13; or you reported qualified

dividends on Form 1040, line 9b; or you had a gain on both lines 15 and 16 of Schedule D (Form 1040), enter

the amount from line 3 of this worksheet on Form 8801, line 29. Complete the rest of Part III of Form 8801.

However, before completing Part III, see Forms 2555 and 2555-EZ, on page 4, to see if you must complete

Part III with certain modifications. Then enter the amount from Form 8801, line 47, here.

•

All others: If line 3 is $175,000 or less ($87,500 or less if married filing separately for 2009), multiply line 3

by 26% (.26). Otherwise, multiply line 3 by 28% (.28) and subtract $3,500 ($1,750 if married filing separately

for 2009) from the result.

5. Tax on the amount on line 2. If line 2 is $175,000 or less ($87,500 or less if married filing separately for 2009),

multiply line 2 by 26% (.26). Otherwise, multiply line 2 by 28% (.28) and subtract $3,500 ($1,750 if married filing

separately for 2009) from the result. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6. Subtract line 5 from line 4. Enter the result here and on Form 8801, line 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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Instructions for Form 8801 (2010)

Instructions For Form 8801 - 2010 Page 2

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