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How can I claim Foreign Tax Credit?

 
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Category : > Income Tax Filing Across The USA
Posted On : Tue Oct 06th,2009

 
How can I claim Foreign Tax Credit?
 

Foreign Tax Credit

 Generally if you paid income tax to a foreign country, you may be able to take this credit.

 Foreign Taxes Eligible for a Credit

 You can take a credit for income, war profits, and excess profits taxes paid or accrued during your tax year to any foreign country or U.S. possession, or any political subdivision (for example, city, state, or province), agency, or instrumentality of the country or possession. This includes taxes paid or accrued in lieu of a foreign or possession income, war profits, or excess profits tax that is otherwise generally imposed. For purposes of the credit, U.S. possessions include Puerto Rico and American Samoa.

 

U.S. citizens living in certain treaty countries may be able to take an additional foreign tax credit for foreign tax imposed on certain items of income from the United States.

 

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