Tag Archives: Foreign tax credit

Foreign Taxes and Basis

Today TaxMama® hears from RJ in the TaxQuips Forum, who asks an intriguing question. “I understand that both reinvested dividends and reinvested capital gains distributions get added into a mutual fund’s Cost Basis. But what about Foreign Tax Paid? Does Foreign Taxes Paid also get directly added into a fund’s Cost Basis?”

Self Employment and Canada

Today TaxMama® hears from Tony in the TaxQuips Forum with this question. “I have a friend / client who had self employment income in both US and Canada. He has already filed in Canada and is asking me to use the same income amount declared there, here in the US. He now owes the Canadian […]

US Virgin Islands Taxes

Today TaxMama® hears from Pat in the TaxQuips Forum with a quickie question. “Are income taxes paid to the Virgin Islands deductible as state taxes? VI taxes are governed by the Internal Revenue Code so it doesn’t seem logical they’d be deductible, as federal taxes generally aren’t. In addition, the U.S. Virgin Islands aren’t a […]

Foreign Tax Credit

Today TaxMama hears from Yannig in the TaxQuips Forum, who is frustrated. “I paid foreign tax on dividends and interest earned abroad. The gains from foreign interest and dividends are more than offset by losses on stocks. So my total passive income is less than zero. Does that mean my maximum foreign tax credit is […]

Certifying US Residence

Today TaxMama hears from Emilia in the TaxQuips Forum with an interesting situation. Emilia and her husband are US citizens working in Peru. Her husband is taking a temporary assignment in Mexico – and needs to prepare a Form 8802. They are confused about some of the rules – and IRS does not offer clear […]

Tax on Canadian Pension

Today TaxMama hears from Susan in the TaxQuips Forum, who is perplexed. “My husband started receiving a Canadian pension this year. There was $115 non-resident tax paid on the pension.  Canadian tax officials tell me that it can be claimed as a foreign tax credit.  I have no idea how to do this.  Do I […]

Foreign Taxes Deducted from Dividends

Today TaxMama hears from Jun in Passaic, NJ who asks. “Foreign tax is withheld from my dividends or other investments. Where can I get a credit or deduction on my tax forms?”