Foreign income refers to any income that is generated from sources outside the United States. It is important for individuals and businesses, particularly those with international investments and operations, to understand the various regulations and tax implications associated with foreign income.
The Foreign Tax Credit (FTC) is a credit allowed against U.S. income taxes for foreign taxes paid on income earned overseas. It helps to mitigate the double taxation of income that is taxable both in the U.S. and by a foreign country.
