# Urgh, Dumb 1116 Question



## Bonnie151 (Apr 24, 2012)

I'm one week into trying to work out all of the US tax filing requirements and while I think I'm getting there, I keep coming up with what I know are basic questions, but can't figure out despite wading through reams of information!

When I spoke to the IRS in London, she told me to include form 1116 to cover my bank interest.

I THINK I have a very straightforward situation for the past 6 years that I'm filing:

Wages (either from employer or self employed) which are WELL under the FEIE amount
Dividends (less than £60 per year)
Savings account interest (split between cash ISAs and normal savings account but still very small amounts)
Child Benefit

The wages are covered by FEIE. The rest comes well under my personal deduction, so do I need to complete form 1116, or am I completely missing how the personal deduction (5800?) is used?


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## Bevdeforges (Nov 16, 2007)

If your dividends and interest fall well under your standard deduction, just fill out the forms to show that your taxable income (and thus, your tax due amount) is -0- and send 'em in.

You only need to file a form 1116 if you wind up with US taxes due and need to offset with foreign taxes paid.
Cheers,
Bev


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## Bonnie151 (Apr 24, 2012)

Thanks Bev-

My gross salary is around $22,500 and child benefit/interest/dividends (gross) only adds another $3,500 so I can't see my owing any tax!

The staff at the IRS are lovely, but I find that I get incomplete information from them and there's far more information on the forum here! it may well be that I'm not asking the right questions, but it's hard when you don't know what the right questions are!


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## Bevdeforges (Nov 16, 2007)

The other problem with the IRS people at the Consulate is that they know this stuff inside out and don't always realize how bizarre it is your first couple of times filing. They also tend to gear their advice toward those with either large incomes or large investments (or worse, those living off their investments, so the 1116 usually comes into play).

As long as your "other income" is less than the total of your personal exemption plus your standard deduction, take the simple path. As long as everything is declared (and not subject to tax!) you're in good shape.
Cheers,
Bev


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