Ask A Question
Have Tax Questions? Ask a Tax Expert for Answers ASAP
Foreign Tax Credit Questions
What is foreign tax credit?
credit is a credit of the tax that is paid to foreign countries. This credit is non-refundable. Any individual who has worked in a foreign country or earns an income from an investment in a foreign country may claim this credit. Given below are some important questions about foreign tax credit that are answered by Experts.
Does the state of New York have foreign tax credit?
New York State has a foreign tax credit. It is an itemized
that will reduce the total taxable amount for an individual.
How can a person claim foreign tax credit?
An individual may claim foreign tax credit by filing form 1116. The form may be found at
What is a simplified foreign tax limitation?
A simplified foreign tax limitation is an election made by the individual to determine the
Alternative Minimum Tax
(AMT) foreign tax credit limitation on the basis of the individual’s foreign
. The individual must choose this when they claim the AMT foreign tax credit in the first year. Once elected, this limitation may apply to all the future years. The individual may need the approval of the IRS if they decide to cancel this election.
Would the purchase of property in Mexico qualify for foreign tax credit?
In most situations, foreign tax credit is claimed on taxes that were paid to a foreign country. If the individual had to pay taxes to Mexico on their purchase of the property, then the individual may claim the credit for this purchase.
Under what circumstances can an individual claim credit for tax paid in a foreign country?
An individual may be able to claim credit for foreign taxes provided they meet the following conditions:
The tax is imposed on the individual
He/she either pays or accrues the tax
The tax is a legal foreign tax liability
Can an individual claim foreign tax credit if they work for a foreign country from the US itself?
An individual may be able to claim foreign tax credit for work done from the US provided he/she pays the taxes to a foreign country. If any part of the tax is refunded by the foreign country, then the individual may not claim that much amount as credit.
Would an individual be disqualified from making work pay credit if he/she claimed foreign tax credit?
An individual may not be disqualified from making work pay credit if he/she claims foreign tax credit. He/she may claim both.
Can an individual claim credit on money that they had made in 10 days in a foreign country?
An individual may be able to claim credit on money that they make in a foreign country for 10 days if the money is considered to be income and the individual pays tax on it in the foreign country. He/she may either carry back the tax for a year or carry it over for a period of 10 years.
Paying income tax can sometimes have a great impact on your finances. Things can get worse if you end up paying tax for the income you earned in a different country in both that country as well as the US. That is why it is important for you to be aware of what foreign tax credit is and how you may qualify for it. Understanding the various aspects for foreign tax credit will prevent you from being taxed twice for the same income. You may ask an Expert if you have any questions or need further information about foreign tax credit.
Recent Foreign Tax Credit Questions
A relative of mine has dual Australian/USA citizenship. He inherits the USA citizenship fr
A relative of mine has dual Australian/USA citizenship. He inherits the USA citizenship from his parents. He has worked all his life (so far) in Australia, and has paid Australian taxation in full. He was not aware that he was required to file a USA tax return until they contacted him recently with a huge tax bill.
However, since all his earnings have already been fully taxed in Australia, should he be liable for any USA taxation?
Late fees might be another matter of course.
We am looking at setting up a LLC in Delaware to sell domains,
We am looking at setting up a LLC in Delaware to sell domains, website hosting and email services (all virtual services, no physical products). We do not reside in the USA and will initially not have physical offices or presence initially within the USA., hence not sure where the nexus would be.
We will be renting server’s infrastructure in a data center in either Dallas, Buffalo, Chicago or Los Angeles (still to be decided). The website will have a virtual mailbox address and probably a 1-800 number so we will not really be operating out from a specific state. (if this is even allowed??).
We will be selling our services too directly to customer / business as well as resellers who will be reselling these services to their client base.
Do we have to collect any sales tax? If so, based on what state?
Is there any difference between selling to individuals and selling to companies?
Is there any difference between selling to customers with residence within the state of incorporation or outside it?
Would I need to pay taxes based on incorporation in Delaware?
What about employee taxes at a later date, because the LLC has no physical presence would an employee’s tax for salary be paid based on the state the employee lives in?
What else do I need to consider with regard to sales tax as well as any other taxes to run the LLC
I'm a Canadian citizen with a TN visa, living and working
I'm a Canadian citizen with a TN visa, living and working in the US. I'm starting an e-commerce business in Canada at a Canadian address, but will continue to work while I'm in the US on both the e-commerce business and on the TN visa. The buyers and sellers on my platform will be Canadians, Americans, and Internationals.
Will this violate my TN status in any way? If so, can I stay in the US on an F-2 or as a visitor since my husband is going to school here and work mainly in the US?
How will this affect the taxes which I file? Will I get double taxed on my Canadian business?
Looking forward to your reply.
View More Tax Questions
3 Tax Professionals are Online Right Now
Ask Your Own Tax Question
Ask Your Question Now
Ask a Tax question
Type Your Tax Question Here...
3 Tax Professionals are Online Now
In The News
How JustAnswer Works:
Ask an Expert
Get a Professional Answer
Ask Followup Questions
100% Satisfaction Guarantee
Ask a Tax Professional
Get a Professional Answer. 100% Satisfaction Guaranteed.
3 Tax Professionals are Online Now
Type Your Tax Question Here...
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.
Become a Professional
Terms of Service
Privacy & Security
© 2003-2015 JustAnswer LLC