Foreign Tax Credit
If you paid taxes to a foreign country, either directly or through a conduit such as a mutual fund, you may be entitled to a tax credit.
Generally you have the option of claiming foreign taxes as an itemized deduction on Schedule A, or claiming the foreign tax credit on Form 1116, Foreign Tax Credit.
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Save Time
Claiming the credit will nearly always save you more money, but this form is relatively lengthy and complicated to fill out, so it might not be worthwhile unless you've paid large amounts in foreign taxes. For more information, get IRS Publication 514, Foreign Tax Credit for Individuals.
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