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Revision as of 05:07, 11 May 2026

A credit is allowed for foreign income taxes paid or accrued. The money is limited to that part of U.S. tax due to foreign source income. It's not at all refundable, but any excess credit can be carried to other years to reduce tax.

Conversely, earned income abroad, and residual income from foreign securities, rental, or stuff abroad, could be excluded from U.S. taxable income, or foreign taxes paid thereon, could be as credits against You.S. taxes due.

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