I have $1,265 in Foreign Taxes Paid. Can I claim a $1 for $1 tax credit this year or is credit limited to $300. Alternatively, can I include this expense in Schedule A.

[KarenJ · Accepted solution]

Yes , you can claim your all your foreign tax credit this year.  The $300 (single) and $600 (married filing jointly) limits are only to let taxpayers know that they can skip filing a Form 1116 Foreign Tax Credit if their only foreign tax under this amount and is for interest and dividends reported on a Form 1099-INT or 1099-DIV or a Schedule K.

You can choose to take the deduction for the foreign taxes on Schedule A as an itemized deduction on line 6 , other taxes.