• If a partnership doesn ’ t qualify for domestic filing exception , they may qualify for Form 1116 Exemption
Domestic partnership is not required to file Schedules K-2 and K-3 if all partners are eligible for Form 1116 exemption and the partnership receives notification of the partners ’ eligibility for the Form 1116 exemption by the 1-month date .
If partnership only receives notification from some of the partners being eligible for Form 1116 exemption , the partnership need not complete the Schedule K-3 for those exempt partners .
• Form 1116 Exemption
Claim foreign tax credit without filing Form 1116 All of foreign source income was passive category income All of the foreign source income and taxes were reported on a payee statement ( 1099-DIV , 1099-INT , Schedule K-1 , etc )
Creditable foreign taxes are not more than $ 300 if filing single or $ 600 if filing married filing joint