ErnieS0
Expert Alumni

Self employed

Income entered in the Foreign Tax Credit section does not get carried over to any other place. It's only used to compute the allowed credit. 

 

IRS will only give you credit for the amount of U.S. tax you would pay on the foreign income amount. In most cases, the credit is better but sometimes, the deduction gives better results if you are being taxed by a country with an extremely high tax rate.

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