A taxpayer may make the election to either deduct or take a credit for foreign income taxes

Question

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A taxpayer may make the election to either deduct or take a credit for foreign income taxes annually. They must make the election by the due date, including extensions, of their tax return for the year in which the taxes were paid or accrued. This allows taxpayers to choose the method that results in the lesser tax liability.

A Taxpayer May Make the Election to Either Deduct or Take