What is the Foreign Tax Credit?

The FTC, or Foreign Tax Credit is an expat tax benefit that gives you a dollar-for-dollar reduction towards your foreign earned income. For example, if you paid 100 Euros to the Dutch government as a resident of the Netherlands you can take a 100 US dollar credit and apply it to any US taxes you owe.

Generally, the Foreign Tax Credit allows you to get a $ for $ (euro, pound, yen, etc.) credit from the income taxes paid to your host country against your US tax liability.

Learn more about the Foreign Tax Credit.