Question

why is my foreign tax paid credit lower than my actual "foreign taxes paid"?

Forum|Forum|1 year ago
March 4, 2025
1 reply
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The amount of the credit is limited to the lesser of the actual tax paid, or the actual liability on that specific income on the tax return.

For example, if you paid $40 tax on $100 of dividend income, but your US dividend tax on the $100 is only $20, your credit will only be $20.

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