itonewbie
Level 15
12-07-2019
12:15 AM
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The foreign tax was probably grossed up by your client's employer. Inclusion of taxes paid as compensation is not sufficient for substantiating foreign tax credit or deduction; you'd need an Iraqi tax return and proof of tax payment.
It's almost always better claiming FTC. To claim FTC for Iraqi income tax, you'd also need to establish how much of the W-2 income is actually foreign source.
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Still an AllStar
Still an AllStar