Updated October 18, 2026. Quick answer: Lines 33 to 35 finish the form. Line 33 is the smaller of line 20 or line 32, line 34 is a reduction for international boycott operations, and line 35 subtracts line 34 from line 33. Line 35 is your foreign tax credit and is carried to the return named on the form.
Line 33: the smaller of line 20 or line 32
The form says “Enter the smaller of line 20 or line 32” and the instructions repeat it with a note: “Generally, line 32 will exceed line 20 only if you have U.S. capital gains or qualified dividends that are subject to the capital gain rate differential”. Line 20 is explained on the lines 20 to 24 page and line 32 on the lines 25 to 32 page.
Line 34: reduction for international boycott operations
The caption is “Reduction of credit for international boycott operations. See instructions for line 12”. The line 12 instructions explain: “In general, if you agree to participate in, or cooperate with, an international boycott, you must file Form 5713, International Boycott Report, and attach all supporting schedules.” They add “you must reduce either the total taxes available for credit or the credit otherwise allowable by your foreign taxes resulting from boycott activities.”
Which line gets the entry depends on what you can figure: “If you can’t figure the amount of taxes specifically attributable to boycott operations, multiply the credit otherwise allowable by the international boycott factor (figured on Schedule A (Form 5713), International Boycott Factor) and enter the result on Form 1116, line 34.” “Attach a statement to Form 1116 showing in detail how you figured the reduction.” The other method goes on line 12, which the lines 9 to 14 page covers.
Line 35: your foreign tax credit
The caption is “Subtract line 34 from line 33. This is your foreign tax credit.” It continues: “Enter here and on Schedule 3 (Form 1040), line 1; Form 1041, Schedule G, line 2a; or Form 990-T, Part III, line 1a”. The instructions have no separate paragraph for line 35. Individuals can read about the next step on the Schedule 3 line 1 page.
A computed illustration, not an IRS example: if line 33 is $1,000 and line 34 is $100, line 35 is $1,000 less $100 and that is $900.
Where the number comes from
Line 33 comes from lines 20 and 32. Line 34 comes only from the boycott rules in the line 12 instructions, backed by Form 5713. Line 35 is arithmetic on lines 33 and 34. The form is the same for each filer type; the return it goes to is the one named in the caption.
Where it goes next
As the caption says, line 35 goes “on Schedule 3 (Form 1040), line 1” for an individual. Income tax return filers can see how credits flow on the Form 1040 lines 19 to 21 page. For the tax this credit cannot reduce, see the NIIT page.
Edition and line numbers
This page reads the 2025 Form 1116, Foreign Tax Credit (Individual, Estate, or Trust), and its 2025 instructions. They are the current files irs.gov served on 2026-10-18, the files for the tax year 2025 return filed in 2026. The form header says “Attach to Form 1040, 1040-SR, 1040-NR, 1041, or 990-T.” Check the tax year printed on the form you are filling in and use the line numbers on that year’s form, because a different year’s form can number or word its lines differently. The whole form is walked through on the Form 1116 line by line guide page.
Common mistakes
- Entering the larger amount on line 33. The form says “Enter the smaller of line 20 or line 32”.
- Leaving off a boycott reduction. The instructions say “you must reduce either the total taxes available for credit or the credit otherwise allowable by your foreign taxes resulting from boycott activities.”
- Omitting the statement for the reduction. The instructions say “Attach a statement to Form 1116 showing in detail how you figured the reduction.”
Related: Form 1116, Schedule 3 line 1, why the foreign tax credit cannot offset the NIIT, and Form 1040 lines 19 to 21.
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- Instructions for Form 1116, Foreign Tax Credit (Individual, Estate, or Trust) (2025): https://www.irs.gov/pub/irs-pdf/i1116.pdf
- Form 1116, Foreign Tax Credit (Individual, Estate, or Trust) (2025): https://www.irs.gov/pub/irs-pdf/f1116.pdf
Read from the IRS documents linked above on October 18, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.