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Anonymous
Not applicable

Foreign tax credit on income excluded from prior year

I've been searching all over the web, but I can't find a clear cut answer on this, so perhaps someone here will know. The short version of the question is whether you can take the foreign tax credit for taxes paid one year on income earned from a prior year that was excluded at the time.

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1 Reply
pk
Level 15
Level 15

Foreign tax credit on income excluded from prior year

@Anonymous , without more details on the circumstances / facts, cannot really be sure of the answer.  But generally, any  foreign earned income that is excluded from US taxes is not eligible  for foreign tax credit thereon.  This is because generally the purpose of the foreign earned income exclusion is to ameliorate effects of double taxation.

If you need a more specific answer  that addresses your particular situation, then please provide more details including the income source country.

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