Paid Tax in China? Form 1116 Foreign Tax Credit vs Form 2555 Exclusion for 2026
U.S. citizens and green card holders who paid income tax in China can claim a credit on Form 1116 or exclude foreign wages on Form 2555 (up to $132,900 for 2026). Not both on the same income; unused credits carry back 1 year and forward 10.
Read article