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Accounting > Foreign Tax Credit

The following information is about Foreign Tax Credit.

Foreign Tax Credit Defined

A U.S. taxpayer that pays or accrues income tax to a foreign country may elect to credit or deduct these taxes in a determinable us dollar amount. This is usually done on the annual individual tax return and there is s specific form provided for this.

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Off-site Foreign Tax Credit Links, User Submitted

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  • IRS: Publication 514 (2006), Foreign Tax Credit for Individuals: If you paid or accrued foreign taxes to a foreign country on foreign source income and are subject to U.S. tax on the same income, you may be able to take either a credit or an itemized deduction for those taxes. Taken as a deduction, foreign income taxes
  • IRS: Foreign Tax Credit - Special Issues: You can make or change your choice to claim a deduction or credit at any time during the period within 10 years from the due date for filing the return for the tax year for which you make the claim. You make or change your choice on your tax return (or on

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