pk
Level 15
Level 15

Deductions & credits

@gideontax  in general  resourcing of US income that is also taxed by a foreign taxing authority is possible for all countries that  US  has a tax treaty with.  Obviously if  you want to  use Portugal as your home, then yes Portugal has a tax treaty with US.

 

Note that while US would recognize  100% of the taxes paid to a foreign taxing authority, the allowable amount for the current tax year  is limited on form 1116 -- lower of  what you have paid  or  the US tax liability allocated to this doubly taxed income..

 

On Roth or similar tax advantaged  income , I have to go refresh my knowledge on US-Portugal Tax treaty for specifics, but in general  if an amount  is taxed by the Foreign Taxing Authority as " income", then it is eligible  for  Foreign Tax Credit treatment ( again depending on exact facts and circumstances ).

 

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