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 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 […]