What is the Foreign Tax Credit?

The Foreign Tax Credit is an IRS provision that expats can claim when they file their federal tax return that provides them with US tax credits to the same value as the foreign tax that they have already paid abroad.

Foreign Tax Credit News

The Foreign Tax Credit can only normally be applied to income sourced abroad. Expats can claim the Foreign Tax Credit by filing IRS Form 1116. Find out more here.

The US Foreign Tax Credit – A Complete Guide for Expats

The US Foreign Tax Credit for Expats - the Ultimate Guide

All Americans, including those who live abroad, are required to file US taxes, reporting their worldwide income. The US is the only country (besides African minnow Eritrea) that requires all of its citizens to file and pay taxes on their global income even if they live abroad. In contrast, the majority of foreign countries either […]

Is There a Foreign Income Tax Offset for US Expats?

Foreign Income Tax Offset for US Expats

All Americans have to file a US tax return, reporting their worldwide income, including expats. This is because the US taxes based on citizenship, rather than based on residence like most other countries. This means that many Americans living abroad face the prospect of double taxation, paying income taxes both in the country where they […]

Is There a Foreign Income Tax Credit for U.S. Expats?

expat foreign income tax credit

Of the more than nine million Americans who live overseas, many of them only discovered that they are required to file U.S. taxes from abroad, reporting their worldwide income, after they had moved. Millions of U.S. expats must also pay income tax in the country where they live, so the question arises of how to […]

Is There an Overseas Tax Exemption for US Expats?

expat with overseas tax exemption

Many expats are surprised or even shocked when they discover that they have to file US taxes from abroad. They may be paying foreign taxes where they live already, and anyway no other country (except Eritrea) requires expats to continue filing if they move abroad. While the US has tax treaties with over 100 other […]

When Should Expats Use The Foreign Tax Credit?

expat foreign tax credit

The US is the only developed country in the world that taxes foreign-sourced income of non-residents. This means that US citizens (including so-called ‘Accidental Americans‘) who meet certain minimum income thresholds still have to file a US federal income tax return to declare their worldwide income if they live or earn abroad. Many Americans living abroad will […]

The American Foreign Tax Credit – What Is It?

american foreign tax credit

US citizens and green card holders living abroad are required to report their worldwide income to the IRS. They may also have to pay foreign income tax in their country of residence. Paying the full rate of tax on the same income to two different countries is called double taxation. The Foreign Tax Credit is […]