Looking for a Irs Forms And Templates? Download it for free!

2016 Foreign Earned Income Tax Worksheet—Line 16

Keep for Your Records

Use this worksheet if you claimed the foreign earned income exclusion or housing exclusion on your 2016 Form 1040 using

Form 2555 or 2555-EZ. However, if Schedule J, line 15, is zero or less, don't complete this worksheet.

1. Enter the amount from your 2017 Schedule J, line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

2a. Enter the amount from your (and your spouse's, if filing jointly) 2016 Form 2555, lines 45 and 50,

or Form 2555-EZ, line 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2a.

b. Enter the total amount of any itemized deductions or exclusions you could not claim for 2016

because they were related to excluded income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b.

c. Subtract line 2b from line 2a. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

4. Figure the tax on the amount on line 3. Use the 2016 Tax Rate Schedules, the 2016 Qualified

Dividends and Capital Gain Tax Worksheet,* or the 2016 Schedule D Tax Worksheet in the 2016

Schedule D instructions,* whichever applies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

5. Figure the tax on the amount on line 2c. Use the 2016 Tax Rate Schedules. . . . . . . . . . . . . . . . . . . . 5.

6. Subtract line 5 from line 4. Enter the result. If zero or less, enter -0-. Also include this amount on

your 2017 Schedule J, line 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.

*Enter the amount from line 3 above on line 1 of the 2016 Qualified Dividends and Capital Gain Tax Worksheet or the 2016 Schedule D Tax

Worksheet if you use either of those worksheets to figure the tax on line 4 above. Complete the rest of that worksheet through line 6 (line 10 if

you use the Schedule D Tax Worksheet). Next, you must determine if you had a capital gain excess. To find out if you had a capital gain excess,

subtract the amount from your 2017 Schedule J, line 15, from line 6 of your 2016 Qualified Dividends and Capital Gain Tax Worksheet

(line 10 of your 2016 Schedule D Tax Worksheet). If the result is more than zero, that amount is your capital gain excess.

If you didn't have a capital gain excess, complete the rest of either of those worksheets according to the worksheet's instructions. Then

complete lines 5 and 6 above.

If you had a capital gain excess, complete a second 2016 Qualified Dividends and Capital Gain Tax Worksheet or 2016 Schedule D Tax

Worksheet (whichever applies) as instructed above but in its entirety and with the following additional modifications. Then complete lines 5

and 6 above. These modifications are to be made only for purposes of filling out the 2016 Foreign Earned Income Tax Worksheet above.

1. Reduce (but not below zero) the amount you would otherwise enter on line 3 of your 2016 Qualified Dividends and Capital Gain Tax

Worksheet or line 9 of your 2016 Schedule D Tax Worksheet by your capital gain excess.

2. Reduce (but not below zero) the amount you would otherwise enter on line 2 of your 2016 Qualified Dividends and Capital Gain Tax

Worksheet or line 6 of your 2016 Schedule D Tax Worksheet by any of your capital gain excess not used in (1) above.

3. Reduce (but not below zero) the amount on your 2016 Schedule D (Form 1040), line 18, by your capital gain excess.

4. Include your capital gain excess as a loss on line 16 of your 2016 Unrecaptured Section 1250 Gain Worksheet in the 2016 Instructions for

Schedule D (Form 1040).

4972; alternative minimum tax if you

vance monthly payments of the health

Lines 19, 20, and 21

filed Form 1040A; amounts from the re-

coverage tax credit.

For example, your “tax” line may, in ad-

capture of an education credit; or a re-

If you amended your return or the

dition to the tax imposed by section 1,

payment amount for any excess of ad-

IRS made changes to it, make sure you

include amounts from Forms 8814 or

enter the corrected amount.

J-14

Instructions For Schedule J (Form 1040) - Income Averaging For Farmers And Fishermen - 2017 Page 14

Related Articles

Related forms

Related Categories