Kayla and Ashton are U.S. citizens who file married filing jointly. In 2019, they received income from their foreign investments, from which $98 of foreign taxes were withheld. Although the couple has documentation regarding the income and the amount of taxes withheld, the information was not reported to them on a qualified payee statement. What steps can Kayla and Ashton take to avoid being taxed twice on their foreign income?

They must either file Form 1116, Foreign Tax Credit, or claim an itemized deduction for the foreign tax paid.

Their only option is to claim an itemized deduction for the Foreign Income Tax.

They may claim the Foreign Tax Credit directly on Schedule 3, Additional Credits and Payments, or claim an itemized deduction for the foreign tax paid.

None. They are not eligible to claim either the deduction for foreign taxes or the Foreign Tax Credit.

Answer rating: 100% (QA)

Itemized deductions are available for married couple filing taxes jointly When foreign ... View the full answer