IRC §901, IRC §904
Foreign Tax Credit
If you pay taxes to a foreign government on income also taxed by the U.S., the Foreign Tax Credit prevents double taxation. In some cases, the credit is more valuable than the FEIE.
Who this may apply to
- Pay income taxes to a foreign country
- Have foreign-source income reported on U.S. return
Strategy connections
Watch out
- Foreign Earned Income Exclusion (FEIE): Taxes allocable to income excluded under the FEIE generally cannot also be claimed as a credit.
What could block this
- No qualifying foreign tax paid or accrued
- The tax is not an income tax or tax in lieu of an income tax
- The limitation calculation produces no currently usable credit
Professional support
International Tax Specialist
Will calculate the credit, compare with FEIE benefits, and optimize your international tax position.
Official sources
Reviewed 2026-07-24