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Foreign Income & Foreign Tax Credits
Salary, rent, dividends and business income from China on your U.S. return, with the foreign tax credit (Form 1116) or the foreign earned income exclusion (Form 2555) to avoid double tax.
What is included
- Converting foreign income at the right exchange rates
- Foreign tax credit (Form 1116) by income category
- Foreign earned income and housing exclusion (Form 2555)
- U.S.–China treaty positions (Form 8833) when they apply
- Carryback and carryforward of unused credits
Credit or exclusion?
The exclusion suits people living abroad with modest tax rates; the credit usually wins when the foreign tax is higher than the U.S. tax, as it often is for salaries in China. We model both.
Common questions
I paid tax in China. Do I pay again in the U.S.?
Usually you claim a credit for the Chinese tax, so the U.S. only collects the difference, if any.
Tell us your situation. We will tell you the fee.
A few short questions, a written quote within one business day, and a free 15-minute consultation if you would rather talk it through first.