@SusanY1 @RobSI
There are significant limitations getting credit from the IRS for foreign taxes paid. Even CPA Tax professionals get confused completing IRS Form 1116. Limitations:
(1) Your foreign tax credit cannot exceed your total U.S. tax liability multiplied by a fraction. (2) The numerator of the fraction is your taxable income from sources outside the United States. (3) The denominator is your total taxable income from both U.S. and foreign sources. (4) There is also a limit on the amount of the credit you can claim.
In my particular situation, I was limited to <$1,000/Year in foreign tax exceptions, versus >$10,000 in foreign taxes I had to pay. It's a total SCAM job by the IRS, getting American taxpayers to believe that any foreign taxes paid will be credited against their US tax return, when that's absolutely not the case. No wonder so many Americans cheat on their taxes!! I'm not one of those Americans, but it cost me dearly, financially, and I now manage my foreign accounts very differently.
