Foreign Tax Credit Calculator
Calculate your foreign tax credit to avoid double taxation. Determine eligible credits, limitations, and maximize your tax savings based on your international income and taxes paid abroad.
Step 1: Income & Taxes
Understanding Foreign Tax Credit
The foreign tax credit helps avoid double taxation by allowing you to credit taxes paid to foreign governments against your domestic tax liability. The credit is generally limited to the lesser of foreign tax paid or the domestic tax on foreign income.
Step 2: Tax Rates & Limits
Credit Limitations
The foreign tax credit is limited to the lesser of: 1) Actual foreign taxes paid, or 2) U.S. tax liability on foreign income. Excess credits can often be carried back 1 year and forward up to 10 years in some jurisdictions.
Foreign Tax Credit Results
Estimated Foreign Tax Credit
Tax Rate Comparison by Country
| Country | Tax Rate | Tax on $50K | Potential Credit |
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Tax Liability Breakdown
Foreign Tax Credit Formula
Foreign Tax Credit = Min(Foreign Tax Paid, (Foreign Income / Worldwide Income) × Worldwide Tax Liability)
To calculate your foreign tax credit: Determine your worldwide tax liability, calculate the limitation based on foreign income proportion, then compare with actual foreign taxes paid.
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