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Deductions & credits
No, that isn't necessarily true. Generally, state taxes on foreign income are not considered foreign taxes paid for the purposes of the Federal Foreign Tax Credit (FTC). The FTC is designed to offset U.S. federal taxes on foreign income, but it only applies to taxes paid to a foreign country—not state taxes within the U.S.
However, some states may offer deductions or credits for foreign taxes paid, but this would be separate from the federal FTC. Each state has its own tax rules, so it’s worth checking whether your state provides any relief for foreign income taxation.
@SomeoneStrugglingWithFilingTaxes
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3 weeks ago