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Old 21.08.2015, 22:09
learning learning is offline
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Re: FAQ: Expat's Guide to US Tax

I'd like to ask for clarification of one more item: Do ALV and NBUV qualify as eligible income taxes for which I can take a credit on Form 1116?

I read on the IRS web site that social security taxes are not eligible foreign income taxes for purposes of calculating the foreign tax credit (Form 1116). From the US-Switzerland Totalization agreement, I understand social security taxes to include AHV (retirement and survivors' pension insurance) and IV (disability insurance).
On my year-end summary (Lohnausweis), these disallowed items (AHV and IV) are clustered together with ALV (unemployment insurance) and NBUV (non work-related accident/injury insurance). ALV and NBUV amounts are calculated based on my salary and are mandatory payments, so they would seem to fit the definition of an income tax that is eligible for credit on Form 1116, but I haven't found any statement here or elsewhere on the web confirming this and their clustering with disallowed items makes me question this logic.
Thank you in advance for any clarification you can provide regarding the proper treatment of ALV and NBUV for the purposes of calculating the foreign tax credit on Form 1116.
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