_____ 20. A U. S. citizen working in a foreign country with a higher tax rate on income than the U. S. tax rate, is usually better off claiming the foreign tax credit than the foreign earned income exclusion.

Question

Quizplus · Accepted Answer

Claiming the foreign tax credit allows the taxpayer to offset their U.S. tax liability with the taxes paid to the foreign country, which can result in a lower overall tax burden. The foreign earned income exclusion only excludes a certain amount of income from U.S. taxation and may not be as beneficial in cases where the foreign tax rate is higher.

_____ 20 a U