IRS Publication 54 has the details. Typically, the amount of income you can exclude is prorated by the percentage of days during the year you were outside the United States. » MORE: See what other kinds of income mi...
Rocco V. FemiaMarc J. GersonKathryn Morrison Sneade
The IRS allows taxpayers to claim qualifying taxes as an itemized deduction instead of the foreign tax credit. Before deciding which options will be best, you need to understand the difference between a credit and a deduction. Tax Credit A tax credit directly reduces the amount of tax you owe...
IRS Publication 519, U.S. Tax Guide for Aliens, provides more information about the qualifications for being considered a U.S. resident alien for tax purposes. U.S. citizens and U.S. resident aliens must report all of their income to the U.S. government so that it may be taxed appropr...
The U.S. Internal Revenue Service announced temporary relief for taxpayers in determining whether a non-U.S. (foreign) tax is eligible for a foreign tax credit under U.S. tax law. This temporary relief applies to taxes paid or accrued in tax years 2022 and 2023. The new requirements in...
How the foreign tax credit (FTC) can minimize double taxation on foreign income; who is eligible to claim the FTC, and the applicable types of income for which the FTC can be claimed; illustrated with examples.
For more information on foreign taxes paid by Americans, seeIRS Publication 514.
The article reports on the new foreign tax credit regulations released by the U.S. Internal Revenue Service (IRS) and Treasury Department. The application of the section 909 foreign tax credit splitter rules to post-2010 taxable years is addressed by the first set of regulations. The second se...
IRS Limits Application of Foreign Tax Credit Disallowance Rules for Back-to-Back Licensing Arrangements.The article reports on the guidance issued by the U.S. Internal Revenue Service concerning back-to-back computer program licensing arrangements that occur in the ordinary course of business and the...
Learn what foreign tax credit you should be aware of if you're a U.S. citizen living abroad and how to report foreign income with Form 1116.