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Old 04.05.2019, 10:49
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Double taxation on US Income

Hello everyone,

I am a US Citizen living in Baselland

I realize I take a foreign tax credit against income that is related to my swiss employment

However, switzerland also charges me taxes on income outside of the country. e.g., renting out my house in the US, interest from US bank accounts.

And of course, the US includes this in my income as well and taxes me on it.

I am realizing that i cannot deduct taxes paid to Switzerland from my US taxes on income unrelated to swiss sources (e.g. investment income). Therefore, I am subject to double taxation on that non-swiss income.


100k swiss employment income
100k ex-swiss investment income
total income = 200k. taxes paid, lets say 50k

but when i file my US taxes, I have 200k income, but can only claim the Foreign tax credit against the 100k of foreign income.. so approx ~half of that $50k ends up being credited, and the remaining $25k of tax goes into carryover.
Am I thinking about this correctly?

Thank you for your thoughts or confirmations.

edit: trying to clarify the complex language to make it easier to understand... best i can do.
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Old 04.05.2019, 11:21
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Re: Double taxation on US Income

Is the 100K including Pension (your & employer contributions)?
If so with foreign earned income allowance, you will pay no US tax on Swiss income.

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Old 04.05.2019, 11:57
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Re: Double taxation on US Income

For US dividend and interest income on which US taxes are due, you should consider filing a DA-1. This can allow up to 15% of the dividend and interest income to refunded. More information is at this link (German):

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