pk
Level 15
Level 15

Deductions & credits

@spetril , yes of course.

However, depending on  the exact facts and circumstances, the foreign tax credit may not help --- you may have to carry the credit to the following year -- I say this because  foreign tax credit is a non-refundable credit ( that is it can only reduce your tax liability but not below zero ).   Please note that in most treaties, incomes from govt. sources  are taxed only by the govt. that issues the income and not by the other state ( host country ).-- depending on the actual treaty language/condition.

Also to use the foreign tax credit ( form 1116 ), you will have to resource the Social Security & IRA distributions to your host country -- only for purposes of the  foreign  tax credit.

 

Is there more I can do for you ?

 

pk

 

 

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