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A credit is allowed for foreign income taxes paid or accrued. The money is limited certain part of Ough.S. tax due to foreign source income. It's not at all refundable, but any excess credit become carried to other years to reduce tax.

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Congress finally acted on New Year's Day, passing the "fiscal cliff" rule. This law extended the existing tax rate structure for single taxpayers with taxable income of as compared to USD 400,000, and married taxpayers with taxable income of less than USD 450,000. For those with higher incomes, the top tax rate was increased to twenty.6% These limits are determined ahead of foreign earned income exclusion.

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The great part could be the county is receiving their tax money to offer us with roads, fire and police departments, etc. Whether they use domestic or foreign investor dollars, most of us win!

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