The foreign tax credit is equal to the smaller of foreign taxes paid or accrued in the tax year or the portion of the U.S.income tax liability attributable to the income earned in all foreign countries.

Name: The foreign tax credit is equal to the smaller of foreign taxes paid or accrued in the tax year or the portion of the U.S.income tax liability attributable to the income earned in all foreign countries.
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Question

Quizplus · Accepted Answer

This is the correct definition of the foreign tax credit.

The Foreign Tax Credit Is Equal to the Smaller of Foreign