Publication 514 discusses the credit or itemized deduction you may be able to take if you paid or accrued foreign taxes to a foreign country on foreign source income and you are subject to U.S. tax on that same income. Taken as a deduction, foreign income taxes reduce your U.S. taxable income. Taken as a credit, foreign income taxes reduce your U.S. tax liability. Current Revision Publication 514PDF (HTML | eBookEPUB) Recent Developments COVID-19 relief for Form 2555 filers -- 7-MAY-2020 Other Items You May Find Useful All Revisions for Publication 514 Low Income Taxpayer Clinics About Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad About Publication 519, U.S. Tax Guide for Aliens About Publication 570, Tax Guide for Individuals With Income From U.S. Possessions Other Current Products Related Items About Form 1040, U.S. Individual Income Tax Return About Form 1040-NR, U.S. Nonresident Alien Income Tax Return About Form 1040-X, Amended U.S. Individual Income Tax Return About Form 1116, Foreign Tax Credit (Individual, Estate, or Trust) About Form 1118, Foreign Tax Credit - Corporations About Form 4972, Tax on Lump-Sum Distributions About Form 5471, Information Return of U.S. Persons With Respect To Certain Foreign Corporations About Form 5713, International Boycott Report About Form 6251, Alternative Minimum Tax - Individuals About Form 8822, Change of Address About Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b) About Form 8864, Biodiesel and Renewable Diesel Fuels Credit
