If you pay foreign taxes on income generated abroad, you’re probably eligible for a nice U.S. tax deduction or credit.
Don’t stop reading because you think
you don’t have a foreign account or direct foreign investment.
If you’ve got money in U.S. stocks or mutual funds that invest overseas, you likely are paying foreign taxes. You’re just not aware of it.
And the good news is Uncle Sam will give you a tax break equal to the (invisible) taxes you’re paying abroad. This can amount to thousands of dollars over the years!
Want to learn how to save on your taxes? Read my new article titled Tax Tips: Pay Foreign Taxes on Investment Income? Reduce Your U.S. Tax Bill.
Five strategies for cutting your taxes.
Strategy #1: Learn foreign tax-law basics. Why pay the IRS more than you have to? We’ll tell you exactly what you need to know to save you money when you read the full article.
Strategy #2: Take a credit over a deduction. This is almost always the smart move. We’ll give you three reason why taking the credit makes sense when you read the full article.
Strategy #3: Elect to claim the foreign tax credit in full with no limitation. We’ll tell you what how to do it and why, when you read the full article.
Strategy #4: Keep foreign investments outside your IRA. The IRS won’t let you take a foreign tax deduction or credit for income that’s excluded from tax. This includes investments in tax-deferred accounts like IRAs. You’ll get all the details when you read the full article.
Strategy #5: Handle the AMT the right way. If you’re a victim of the alternative minimum tax, you should know the winning way to cut your regular tax and your AMT. All will be explained when you read the full article.