Our Videos

FAQ / I am a U.S. citizen living and working overseas. Can I have a tax credit on my U.S. taxes for the taxes I pay to the foreign country?

The foreign tax credit is intended to relieve U.S. taxpayers of the double tax burden when their foreign source income is taxed by both the United States and the foreign country from which the income is derived.

Generally, only income taxes paid or accrued to a foreign country or a U.S. possession qualify for the foreign tax credit. You can choose to take the amount of any qualified foreign taxes paid or accrued during the year as a foreign tax credit or as an itemized deduction.

To choose the foreign tax credit you must generally complete Form 1116 (PDF), Foreign Tax Credit, and attach it to your Form 1040 (PDF). You may claim credit without attaching Form 1116 if all of your foreign source income is passive income (such as interest and dividends) reported to you on qualified payee statements and the total amount of qualifying foreign taxes you paid or accrued is not more than $300 ($600 in the case of a joint return) and is also reported to you on these qualified payee statements. To choose the deduction, you must itemize deductions on Form 1040, Schedule A (PDF).

You may not take either a credit or a deduction for taxes paid or accrued on income you exclude under the foreign earned income exclusion or the foreign housing exclusion. There is no double taxation in this situation because the income is not subject to U.S. tax.

Keywords: double taxation, foreign tax,


AnnaMaria Realbuto
Thank you for all your assistance and efficiency...
Read More »
Kateryna Melnychenko
Thanks a lot Anton!...
Read More »
Rani Payne
Thank you so much! Iím sure I will be in touch again with something else that will need to be apost...
Read More »
Serge Bauer Law
Thank you again for your help with this case!...
Read More »


How Is Chilean Sea Bass Currently Managed?
Read More »
Where can I get assistance with writing my business plan?
Read More »
What Tax Records to Keep
Read More »
What are the Acceptable English Language Test Scores for Health Care Worker Certification?
Read More »


February 23, 24
Navalnyís death certificate reportedly states natural causes
Read More »
February 19, 24
Birth Certificate Woes: DC Family's Struggle Highlights Home Birth Challenges
Read More »
February 14, 24
Coroner Charged with Theft and Fraud, Faces Removal Amidst Controversy Over Death Certificates
Read More »
February 10, 24
Hungarian president under fire over pardon of man with child sex abuse-related criminal record
Read More »