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Old 12.03.2016, 20:16
its4me its4me is offline
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Join Date: Jul 2008
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US TAX, Foreign Tax Credit, IRS Form 1116

I have wondered why the f1116 reduced my foreign tax credit when it was designed to avoid double taxation. Then I read, this time in PUB 54, "the foreign tax credit can only reduce your US taxes on foreign source income;it cannot reduce US taxes on US source income." This explains why the mismatch exists but doesn't justify why.

Another EF member, The village idiot, linked a guide (FAQ:Expats Guide to US Tax, FAQ: Expat's Guide to US Tax) that answers part of my question, there's actually another form that you can use to address this problem, called "Additional Foreign Tax Credit on US Income".

Has anyone actually used this form to actually minimize the double taxation?

Last edited by 3Wishes; 12.03.2016 at 21:14. Reason: removed extra spaces
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