Guide to Global Payroll Management - 2020 - D-140

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Guide to Global Payroll Management

Worksheet for Line 18 (Worldwide Qualified Dividends and Capital Gains)

CAUTION

Keep for Your Records

See the instructions for Line 18 below before starting this worksheet.

1. Individuals: Enter the amount from Form 1040 or 1040-SR, line 11b. If you are a nonresident
alien, enter the amount from Form 1040-NR, line 41.
Estates and trusts: Enter taxable income without the deduction for your exemption.
2. Enter your worldwide 28% gains (see instructions).

3. Multiply line 2 by 0.2432.

4. Enter your worldwide 25% gains (see instructions).

5. Multiply line 4 by 0.3243.

6. Enter your worldwide 20% gains and qualified dividends (see
instructions).

7. Multiply line 6 by 0.4595.

8. Enter your worldwide 15% gains and qualified dividends (see
instructions).

9. Multiply line 8 by 0.5946.

10. Enter your worldwide 0% gains and qualified dividends (see
instructions).

10.

11. Add lines 3, 5, 7, 9, and 10.

11.

12. Subtract line 11 from line 1. Enter the result here and on Form 1116, line 18.

12.

foreign source taxable income for that
tax year or for any preceding tax year (in
which you choose to claim the foreign
tax credit) because of a carryback. If
you don't choose to claim the foreign tax
credit for a tax year, the overall
domestic loss is the domestic loss for
that tax year to the extent that it offsets
foreign source taxable income for any
preceding tax year (in which you chose
to claim the foreign tax credit) because
of a carryback.
Domestic loss. A domestic loss is
the amount by which the U.S. source
gross income for the tax year is
exceeded by the sum of the expenses,
losses, and other deductions properly
allocated or apportioned to that income.
Determine this amount by taking into
account any net operating loss carried
forward from a prior tax year (but not
any loss carried back). If you have any
capital gains or losses, take them into
account after any adjustments required
under Foreign Qualified Dividends and
Capital Gains (Losses), earlier.

Line 18

If you have qualified dividends or capital
gains, you may be required to make
adjustments to those qualified dividends

Instructions for Form 1116 (2019)

D-140

and gains before you take those
amounts into account on line 18.

Worksheet is less than line 24 of that
worksheet.

Individuals Who Completed a
Qualified Dividends and Capital
Gain Tax Worksheet

Adjustment exception. If you qualify
for the adjustment exception, you can
elect not to adjust your qualified
dividends and capital gains. You make
this election by not completing the
Worksheet for Line 18. You must make
this election if you have any foreign
qualified dividends or foreign capital
gains (or losses) and you chose not to
make any adjustments to those
amounts when you completed lines 1a
and 5. You can't make this election if
you have any foreign qualified dividends
or foreign capital gains (or losses) and
you made adjustments to those
amounts when you completed lines 1a
and 5. In this case, complete the
Worksheet for Line 18.
If you aren't required to complete the
Worksheet for Line 18 or you qualify for
the adjustment exception and elect not
to adjust your qualified dividends and
capital gains, enter on line 18 of Form
1116 your taxable income without the
deduction for your exemption (for
example, the amount from Form 1040 or
1040-SR, line 11b).

If you completed the Qualified
Dividends and Capital Gain Tax
Worksheet in the instructions for your
tax return, you must use the Worksheet
for Line 18 to figure the amount to enter
on line 18 if:
1. You file Form 1040 or 1040-SR
and
a. Line 7 of your Qualified Dividends
and Capital Gain Tax Worksheet is
greater than zero, and
b. Line 25 of your Qualified
Dividends and Capital Gain Tax
Worksheet is less than line 26 of that
worksheet; or
2. You file Form 1040-NR and
a. Line 5 of your Qualified Dividends
and Capital Gain Tax Worksheet is
greater than zero, and
b. Line 23 of your Qualified
Dividends and Capital Gain Tax
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Guide to Global Payroll Management - 2020

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