Page 107 - Individual Forms & Instructions Guide

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Instructions for Schedule 3 14:28 - 20-Jan-2023

Additional Credits and Payments

4. You aren’t filing Form 4563 or attend an eligible educational institution,
General Instructions excluding income from sources within you may be able to take an education
Puerto Rico.
credit. See Form 8863 for details. How-
5. All of your foreign taxes were: ever, you can't take an education credit
Use Schedule 3 if you have nonrefunda- if any of the following applies.
ble credits, other than the child tax credit a. Legally owed and not eligible for • You, or your spouse if filing joint-
or the credit for other dependents, or a refund or reduced tax rate under a tax ly, are claimed as a dependent on some-
other payments and refundable credits. treaty, and one else's (such as your parent's) 2022
b. Paid to countries that are recog- tax return.
Include the amount on Schedule 3, nized by the United States and don’t
• Your filing status is married filing
line 8, in the amount entered on Form support terrorism. separately.
1040, 1040-SR, or 1040-NR, line 20.
For more details on these require- • The amount on Form 1040 or
Enter the amount on Schedule 3, ments, see the Instructions for Form 1040-SR, line 11, is $90,000 or more
line 15, on Form 1040, 1040-SR, or 1116. ($180,000 or more if married filing
1040-NR, line 31. Do you meet all five requirements jointly).
• You, or your spouse, were a non-
just listed? resident alien for any part of 2022 unless
Yes. Enter on line 1 the smaller of
Specific Instructions (a) your total foreign taxes, or (b) the to- your filing status is married filing joint-
ly.
tal of the amounts on Form 1040 or You may be able to increase an edu-
Line 1 1040-SR, line 16, and Schedule 2, cation credit if the student chooses to in-
Foreign Tax Credit line 2. clude all or part of a Pell grant or certain
No. See Form 1116 to find out if other scholarships or fellowships in in-
If you are a shareholder in a you can take the credit and, if you can, if come.
TIP controlled foreign corporation you have to file Form 1116. For more information, see Pub. 970;
and made a section 962 elec-
tion, see the instructions for Forms 1040 Line 2 the instructions for Form 1040 or
and 1040-SR, line 16, for the foreign tax Credit for Child and Dependent 1040-SR, line 29; and IRS.gov/EdCredit.
credit you figured on Form 1118.
Care Expenses Line 4
If you paid income tax to a foreign You may be able to take this credit if, in Retirement Savings Contributions
country or U.S. possession, you may be order to work or look for work, you paid Credit (Saver's Credit)
able to take this credit. Generally, you someone to care for:
must complete and attach Form 1116 to You may be able to take this credit if
do so. • Your qualifying child under age 13 you, or your spouse if filing jointly,
whom you claim as your dependent,
Exception. You don’t have to complete • Your disabled spouse or any other made (a) contributions, other than roll-
Form 1116 to take this credit if all of the disabled person who couldn't care for over contributions, to a traditional or
following apply. themselves, or Roth IRA; (b) elective deferrals to a
401(k) or 403(b) plan (including desig-
1. All of your foreign source gross • Your child whom you couldn't nated Roth contributions) or to a govern-
income was from interest and dividends claim as a dependent because of the mental 457, SEP, or SIMPLE plan; (c)
and all of that income and the foreign rules for Children of divorced or separa- voluntary employee contributions to a
tax paid on it were reported to you on ted parents under Who Qualifies as Your qualified retirement plan (including the
Form 1099-INT, Form 1099-DIV, or Dependent, earlier. federal Thrift Savings Plan); (d) contri-
Schedule K-1 (or substitute statement). For details, use Tax Topic 602 or see butions to a 501(c)(18)(D) plan; or (e)
2. The total of your foreign taxes Form 2441. contributions to an ABLE account by
wasn't more than $300 (not more than the designated beneficiary, as defined in
$600 if married filing jointly). Line 3 section 529A.
3. You held the stock or bonds on Education Credits However, you can't take the credit if
which the dividends or interest were If you (or your dependent) paid qualified either of the following applies.
paid for at least 16 days and weren’t ob- 1. The amount on Form 1040,
ligated to pay these amounts to someone expenses in 2022 for yourself, your 1040-SR, or 1040-NR, line 11, is more
spouse, or your dependent to enroll in or
else.

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