Page 62 - International Taxation IRS Training Guides

Individual Foreign Tax Credit

 A U.S. individual earning income from outside the

tax on that income to a foreign country.
U.S. may pay

because the same
Double taxation often results
also taxable by the U.S.
income is

 To mitigate this double taxation,
a FTC is generally

income tax liability for
allowed against the U.S.

accrued.

foreign income taxes paid or This is the
same FTC we discussed earlier.

rules,
 The calculation of the FTC involves complex

limitations and documentation requirements.

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