Sheila and Jerry are married taxpayers with $600 of foreign tax withholding from the dividends in a
mutual fund.They have enough foreign income from the mutual fund to claim the full $600 as a foreign tax credit.They are in the highest tax bracket,35%,and they itemize deductions.Should they claim the foreign tax credit on the Form 1040 or a deduction for foreign taxes on their Schedule A? Why?

Question

Quizplus · Accepted Answer

The Answer of Sheila and Jerry are married taxpayers with $600 of foreign tax withholding from the dividends in a
mutual fund.They have enough foreign income from the mutual fund to claim the full $600 as a foreign tax credit.They are in the highest tax bracket,35%,and they itemize deductions.Should they claim the foreign tax credit on the Form 1040 or a deduction for foreign taxes on their Schedule A? Why?

Sheila and Jerry Are Married Taxpayers with $600 of Foreign