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Foreign tax credit from Bazil

I published an app on Google Play and earned revenue from it. Part of the revenue comes from customers in Brazil who purchased the app. Google Play withheld 25% Brazilian income tax before paying me.

Can this Brazilian income tax be used as a Foreign Tax Credit to offset my U.S. taxes? Which form should I use to report it?

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1 Reply
AmyC
Expert Alumni

Foreign tax credit from Bazil

Yes, you are reporting income earned from Brazil and can claim the tax paid to Brazil on Form 1116. Most people take the credit but you can try the deduction -if you are itemizing. See Claiming the Foreign Tax Credit with Form 1116 - TurboTax.

 

Reference: Foreign Tax Credit | Internal Revenue Service

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