Originally posted by Bob and Susan
"You can take either a credit or a deduction for income taxes paid to a foreign country or a U.S. possession."
"Taken as a deduction, foreign income taxes reduce your taxable income."
"Taken as a credit, foreign income taxes reduce your tax liability."
"regardless of whether you take a credit for foreign income taxes, you may be able to deduct other foreign taxes."
http://www.irs.gov/publications/p54/ch05.html#d0e5905 |