Thanks for the explanation but now I am reading also this:
There are also some taxes that cannot be included in the FTC:
- Taxes on income excluded from your U.S. gross income (If you do not include wages earned in another country as part of your U.S. income, you cannot claim a credit for foreign taxes paid on those wages)
- Taxes paid to a sanctioned country
- Sales tax, value-added tax, real estate taxes, or luxury taxes paid to a foreign government
- Taxes on foreign mineral, oil, and gas income
- Taxes from international boycott operations
- Taxes related to a foreign tax splitting event
- Social Security taxes paid or accrued to a foreign country with which the U.S. has a Social Security agreement
So I am terribly confused as I am told that there is no double taxation when there is a Treaty with the country that does pay the Social Security???
Can you please help some more and explain why the Taxes paid on Dutch SS to the Dutch state cannot be considered an FTC???
Tons of appreciation on the help... (and admiration!)
