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additional $37,225 on line 4. Otherwise, include 25% of the

line 10b; or you had a gain on both lines 15 and 16 of

excess of the amount on line 4 over $223,900. For example, if

Schedule D (Form 1040), complete Part III of Form 8801 and

the amount on line 4 is $243,900, enter $248,900 instead—the

enter the amount from line 47 on line 11. All others, do not

additional $5,000 is 25% of $20,000 ($243,900 minus

complete Part III. Instead, if Form 8801, line 10, is $175,000 or

$223,900).

less ($87,500 or less if you checked filing status box 3, 4, or 5 on

Form 1040NR for 2011), figure the amount to enter on line 11 by

Line 9

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

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

Do not enter more than the sum of your 2011 earned income

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

plus $6,800 if you did not file a joint return for 2011, at least one

or 5 for 2011) from the result.

of your parents was alive at the end of 2011, and one of the

following statements is true.

Line 12

1. You were under age 18 at the end of 2011.

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

2. You were age 18 at the end of 2011 and did not have

2011 Form 1040 (or Form 1040NR) without filing Form 1116,

earned income that was more than half of your support.

enter on Form 8801, line 12, the amount from your 2011 Form

3. You were a full-time student over age 18 and under age

1040, line 47 (or Form 1040NR, line 45). Otherwise, the

24 at the end of 2011 and did not have earned income that was

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

more than half of your support.

your 2011 AMT foreign tax credit (AMTFTC) refigured using only

exclusion items. Follow these steps to figure your MTFTCE.

Certain January 1 birthdays. If you were born on January 1,

1994, you are considered to be 18 at the end of 2011. This

Step 1. Use a separate 2011 Form 1116 for the MTFTCE for

limitation applies to you only if you did not have earned income

each separate category of income specified at the top of Form

that was more than half of your support.

1116.

When applying the separate categories of income, use the

If you were born on January 1, 1993, you are considered to

be 19 at the end of 2011. This limitation applies to you only if you

applicable AMT rate instead of the regular tax rate to determine

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

if any income is “high-taxed.”

was more than half of your support.

Step 2. If you figured your 2011 AMTFTC using the simplified

If you were born on January 1, 1988, you are considered to

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

be 24 at the end of 2011. This limitation does not apply to you.

1116, line 17, the same amount you entered on that line for the

2011 AMT Form 1116. Otherwise, complete Part I using only

Line 10

taxable income and exclusion items that are attributable to

sources outside the United States. If you had any 2011 foreign

If you filed Form 1040NR for 2011 and had a net gain on the

source qualified dividends or foreign source capital gains

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

(including any foreign source capital gain distributions) or losses,

than the smaller of that net gain or line 4.

use the instructions under Step 3 to determine whether you must

Line 11

make adjustments to those amounts before you include the

amounts on line 1a or line 5 of the MTFTCE Form 1116.

If for 2011 you claimed the foreign earned income exclusion,

housing exclusion, or housing deduction on Form 2555 or Form

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

2555-EZ, you must use the worksheet below to figure the

the amount of foreign source qualified dividends, capital gain

amount to enter on line 11.

distributions, and other capital gains and losses to include on

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

Form 1040NR. If for 2011 you filed Form 1040NR and you

reported capital gain distributions directly on Form 1040NR,

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

Keep for Your Records

Foreign Earned Income Tax Worksheet—Line 11

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) 2011 Form 2555, lines 45 and 50, or 2011 Form

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

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

4. Tax on the amount on line 3.

If for 2011 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, later, 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 2011), multiply

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

separately for 2011) 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 2011),

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

separately for 2011) 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 (2012)