Question

What allows expatriates to work abroad to claim taxes paid overseas on their US tax forms, reducing or eliminating double taxation? Localized compensation strategy Balance sheet system Payroll tax credit Overseas premium Foreign tax credit

Answer 1

An.s

Correct answer is option : Foreign tax credit

- The foreign tax credit is a tax break given by the legislature of USto decrease the tax risk of specific taxpayers. The foreign tax credit applies to taxpayers who pay tax on their foreign speculation salary to a foreign government.

- While a few or the entirety of the foreign earned salary can be rejected from government annual tax, a taxpayer can't guarantee both foreign earned pay and foreign tax credit prohibitions on a similar pay.

- Expatriates who work abroad because of the foreign tax credit they can claim taxes paid overseas on their US tax forms, reducing or eliminating double taxation.