Can I use a portion of foreign taxes paid as a deduction and the other portion as a credit?
Taxpayers can choose to deduct foreign taxes paid on Schedule A or claim a credit on Form 1116. The taxpayer must choose either the itemized deduction or credit for any given year. While every taxpayer’s situation is different, it is generally preferred to claim a credit for foreign income taxes paid.
All About Randall Brody
Randall is the Founder of Tax Samaritan, a boutique firm specializing in the preparation of taxes and the resolution of tax problems for Americans living abroad, as well as the other unique tax issues that apply to taxpayers. Here, they help taxpayers save money on their tax returns.