Foreign Tax Credits

George R. Baxendale CPA, Inc. assists clients facing issues related to foreign income taxes including the calculation and efficient utilization of foreign tax credits. Our team of professionals can help US taxpayers comply with IRS rules regarding foreign tax credits.

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Foreign Tax Credits are a vital aspect of international tax planning, ensuring that individuals avoid double taxation on income earned abroad. As a U.S. taxpayer, you may be eligible to claim a Foreign Tax Credit for taxes paid to a foreign country or U.S. possession on income that is also subject to U.S. taxation. This credit serves as a dollar-for-dollar reduction in your U.S. tax liability, offering relief by offsetting the taxes paid abroad.

One advantage of the Foreign Tax Credit is the ability to carry over any excess credits not fully utilized in a particular tax year. This provision, known as the Foreign Tax Credit Carryover, allows you to carry forward the unused credits to future tax years. Our team of experts at George R. Baxendale CPA, Inc. can assist you in navigating the complex rules surrounding carryovers and maximizing the benefits of these credits over time.

When it comes to Foreign Tax Credits, it’s crucial to adhere to the guidelines set by the Internal Revenue Service (IRS). The IRS provides detailed instructions and forms for claiming the Foreign Tax Credit, ensuring compliance with tax laws and regulations. At George R. Baxendale CPA, Inc., we have extensive experience in working with the IRS on matters related to foreign taxation, including the proper reporting and documentation of foreign tax credits. We can provide the expertise and guidance needed to navigate the complexities of the IRS foreign tax credit requirements.

George R. Baxendale, CPA

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George R. Baxendale CPA, Inc. provides tax, business, and risk advisory services for start-ups and established businesses, as well as for individuals. We believe that the services we offer will help you achieve a broad range of your financial and business goals.

183 State Street, 2nd Floor, Boston, MA 02109

M-F: 9am-5pm, S-S: Closed

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