Discussion Archives:Foreign Tax Credit and UK Income

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Discussion Forum Index --> Advanced Tax Questions --> Foreign Tax Credit and UK Income


Discussion Forum Index --> Tax Questions --> Foreign Tax Credit and UK Income

Cody2826 (talk|edits) said:

6 February 2010
Quick question to help clarify my understanding of Form 1116.

US citizen lives in England and earns money in England. He files a England tax return which has a fiscal year end of April 5, 2009. He pays the UK the tax on September 5, 2009.

On the Form 1116 Line 1a he includes all the foreign income he earned between Jan 1 to Dec 31, 2009 of the tax year.

Then on Form 1116 Part II he would claim only the taxes paid on September 5, 2009.

I know this is not much of question, but wanted to make sure I was thinking about it correctly. With the UK fiscal year end it screws with my head alittle.

Im thinking that he could have paid a lot in taxes in one year to the UK, but not get a full benefit from it since his income earned during the calendar year and reported to the US was less than what he actually paid tax on.

Are there any treaties between the US and UK that might effect his tax credit?

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