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April 16, 2023
Question

Why does my foreign tax credit exceed my allowed credit? I have accrued $4682 in UK taxes (living in the UK) and TT says I have exceeded my allowed credit by that amount.

  • April 16, 2023
  • 1 reply
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All my income is from a US source, so I have no foreign income

1 reply

Employee
April 16, 2023

The U.S. UK tax treaty may allow you to treat US sourced income as foreign sourced under certain conditions. If it does, then see p.7 of Form 1116 instructions for details under Income re-sourced by treaty. If there are any restrictions on the amount that can be resourced, then you might be able to obtain extra credit by checking Pub. 514 on p. 36 under Tax Treaties.