How the Foreign Tax Credit Prevents Double Taxation

Lucas and Luna break down the Foreign Tax Credit (FTC), one of the most powerful tools for Americans with foreign investments or overseas income. Using a concrete example—a U.S. investor who holds shares of a German company and pays 15% German withholding tax on dividends—they walk through how Form 1116 works, the per-country and overall limitations, and the tricky interaction with the Qualified Business Income Deduction. They also explain why the FTC is a credit, not a deduction, and how carryover rules let you salvage unused credits for up to 10 years. If you own international ETFs, work abroad, or have foreign rental income, this episode gives you the specific numbers and rules you need to avoid paying tax twice. #ForeignTaxCredit #Form1116 #DoubleTaxation #InternationalInvesting #DividendWithholdingTax #TaxTreaties #PassiveIncome #GeneralCategoryIncome #PerCountryLimitation #CarryoverRules #QualifiedBusinessIncomeDeduction #Form1099DIV #GermanWithholdingTax #USExpats #ForeignRentalIncome #Finance #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo