IRS Tax Guide for Foreign Tax Credit for Individuals, Publication 514 (2019)
IRS Tax Guide for Foreign Tax Credit for Individuals, Publication 514 (2019)

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IntroductionIf you paid or accrued foreign taxes to a foreign country on foreign source income and are subject to U.S. tax on the same income, you may be able to take either a credit or an itemized deduction for those taxes. Taken as a deduction, foreign income taxes reduce your U.S. taxable income. Taken as a credit, foreign income taxes reduce your U.S. tax liability. In most cases, it is to your advantage to take foreign income taxes as a tax credit. The major scope of this publication is the foreign tax credit.This publication discusses: • How to choose to take the credit or the deduction, • Who can take the credit, • What foreign taxes qualify for the credit, • How to figure the credit, and • How to carry over unused foreign taxes to other tax years. Unless you qualify for exemption from the foreign tax credit limit, you claim the credit by filing Form 1116 with your U.S. income tax return

  • Released: August 14, 2017
  • Author: U.S. Internal Revenue Service (IRS)
  • Rating: 5
  • Publisher: Ebook Store Group
  • Total Page: 209 pages
  • File Size: 2251 KB

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