How the Foreign Tax Credit Avoids Double Taxation in 2026

When you earn money abroad—say, from a freelance client in Berlin or a rental property in Lisbon—the U.S. taxes your worldwide income, and the foreign country taxes it too. That's double taxation unless you claim the foreign tax credit. In this episode, Lucas and Luna explain how the credit works, who qualifies, and the key limits to watch for in 2026. They walk through a practical example using the simplified option, explain how the credit interacts with the foreign earned income exclusion, and share a cautionary tale about passive income and the foreign tax credit limitation. By the end, you'll know whether the foreign tax credit or the foreign earned income exclusion is the better move for your situation—and how to avoid the common pitfalls that trip up filers every year. #ForeignTaxCredit #DoubleTaxation #TaxPlanning #ExpatTaxes #ForeignIncome #TaxCredits #USExpatTax #ForeignEarnedIncomeExclusion #TaxLimitation #PassiveIncome #TaxStrategy #Finance #TaxSeason #FexingoBusiness #BusinessPodcast #TaxTips #GlobalTax #2026Taxes Keep every episode free: buymeacoffee.com/fexingo