How the Foreign Tax Credit Prevents Double Taxation

In this episode of The Tax Strategy Podcast, Lucas and Luna break down the Foreign Tax Credit — a little-understood provision that prevents U.S. taxpayers from being taxed twice on the same foreign income. Using the example of a U.S. citizen working remotely for a European company while living in Portugal, they walk through how the credit works, the difference between the direct and indirect credit, the de minimis rule for small foreign tax amounts, and the carryforward period for unused credits. They also explain why the Foreign Tax Credit is central to international tax strategy and how it interacts with the Foreign Earned Income Exclusion. No jargon, just a clear, practical explanation of a complex topic for anyone earning money abroad or investing in foreign stocks. #ForeignTaxCredit #DoubleTaxation #InternationalTax #TaxStrategy #USExpatTaxes #ForeignEarnedIncomeExclusion #Form1116 #PassiveIncome #DirectCredit #IndirectCredit #DeMinimisRule #TaxCarryforward #RemoteWork #DigitalNomadTax #Finance #FexingoBusiness #BusinessPodcast #TaxPlanning Keep every episode free: buymeacoffee.com/fexingo