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Income Tax Planning
Chapter 9: Tax Credits/FOREIGN TAX CREDIT
Warren Academy Course SyllabusSyllabus Slides
Chapter Study Session

Chapter 9: Tax Credits

FOREIGN TAX CREDIT

01.Core Concepts

• If foreign tax is paid, can claim: • Foreign Tax Credit, or • Itemized deduction • Method selected applies to all foreign taxes paid during the year. • Limitations: • No credit for income excluded from U.S. income • No credit for foreign taxes imposed at higher than U.S. rates • Carry back 1 year; forward 10 years