Foreign Tax Credit

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Dictionary Says

Definition of 'Foreign Tax Credit'

A non-refundable tax credit for income taxes paid to a foreign government as a result of foreign income tax withholdings. The foreign tax credit is available to anyone who either worked in a foreign country or has investment income from a foreign source.
Investopedia Says

Investopedia explains 'Foreign Tax Credit'

The Foreign Tax Credit is claimed on Form 1116, unless the taxpayer qualifies for the de minimis exception. The credit can only be claimed on income that is also subject to domestic taxation.

For example, if some of the taxpayer's foreign income is taxable and some is exempt, then the taxpayer must be able to break down the taxes paid on the foreign income only, and only claim the credit for taxes paid on that foreign income.

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'Foreign Tax Credit'

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    The foreign tax credit provides a break on investment income made and taxed in
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    ... Foreign Tax Credit - This credit is designed to reimburse taxpayers for the taxes
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    ... taxed in both. Note that an investor can receive a Federal tax credit
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    ... (The foreign tax credit provides a break on investment income made and
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    ... government. Resident aliens may claim the foreign earned income exclusion
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    ... 2. Foreign Tax Credit Your lemonade stand made money in another country
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  • How can I tell if I'm eligible for an EITC?

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    ... Form 2555 or 2555-EZ (related to foreign earned income ... used to determine the amount
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  • How do I file taxes for income from foreign sources?

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    ... Your tax home must be in a foreign country. ... You must be either: A US citizen who
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