CUSO
Level 3
03-15-2021
04:05 PM
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Hello,
I have a client who was an expat and has accrued a massive tax credit to carryforward. I do not specialize in foreign tax credits and was wondering if anyone knows how he can use his accrued tax credit to offset his ordinary income taxes? Thank you!
sjrcpa
Level 15
03-15-2021
04:59 PM
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He probably can't. It can only be used against foreign income.
Since a lot of countries have higher tax rates than the US, a lot of people end up with foreign tax credit carryovers they can't use.
The more I know the more I don’t know.
CUSO
Level 3
03-17-2021
02:45 PM
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Thank you for the response. Do you know if income can be qualified as foreign sourced income if you are an employee working for a domestic company but working abroad for a short period of time?
