FTC: Foreign Tax Credit

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 Foreign Tax Credit (FTC): A Guide for US Expat Taxes

The US Foreign Tax Credit for Expats - the Ultimate Guide

Did you know that as an American, you’re required to file US taxes, even if you live abroad? That’s right – the US is one of the only countries that requires its citizens to report and pay taxes on their worldwide income. While every country has slightly different rules governing who is liable to file […]

Foreign Tax Credit: Form 1116 Instructions

Foreign Tax Credit Form 1116 instructions

If you’re a US expat working and living abroad, you need to know about the Foreign Tax Credit for a couple of reasons. Firstly, tax credits are more valuable than tax deductions. Credits offset the amount of tax you owe dollar for dollar. Deductions, on the other hand, reduce your taxable income. Secondly, the US […]

When Should US Expats File IRS Form 1118?

When Should US Expats File IRS Form 1118

Americans who move overseas have to continue filing US taxes from abroad, as the US taxes based on citizenship rather than on residence. This means that many Americans living abroad have to file both foreign taxes in their country of residence, and US taxes too. To avoid double taxation, American expats in this situation can […]

Foreign Tax Credit Limitation – What Expats Need to Know

Foreign tax credit limitation for US expats

Without the right tax strategy in place, double taxation is a real possibility for US expats. That’s because the US is among a handful of countries that charges tax based on citizenship, rather than residence.  Fortunately, expats can use the Foreign Tax Credit, among other legislated initiatives, to eliminate the prospect of paying tax twice. […]

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 […]