The intent of the foreign tax credit is to ______.

Question

Quizplus · Accepted Answer

The foreign tax credit is intended to avoid double taxation of foreign-source income. This means that if a US taxpayer earns income in a foreign country and pays taxes on that income to the foreign government, they can claim a credit on their US tax return to offset the taxes paid to the foreign government. This ensures that the taxpayer is not taxed twice on the same income - once by the foreign government and again by the US government.

The Intent of the Foreign Tax Credit Is to ______