How the Foreign Tax Credit Prevents Double Taxation on Global Income

In this episode of The Tax Strategy Podcast with Fexingo, Lucas and Luna unpack the Foreign Tax Credit (FTC) — a critical but often misunderstood tool for Americans with foreign income. They walk through a concrete example: a freelance consultant earning $120,000 from a German client who already paid 15% German tax. Lucas explains how Form 1116 works, the difference between foreign earned income exclusion and the FTC, and why the foreign tax credit limitation can leave some taxpayers with stranded credits. Luna chimes in with the key distinction between foreign taxes on passive income versus earned income, and they both clarify common myths about double taxation. Perfect for freelancers, remote workers, and investors with international portfolios. No fluff, just practical strategy. #ForeignTaxCredit #Form1116 #DoubleTaxation #InternationalTax #FreelanceTax #RemoteWorkTax #TaxStrategy #FTC #PassiveIncome #EarnedIncome #USExpats #GermanTax #TaxCredit #Finance #FexingoBusiness #BusinessPodcast #TaxPlanning #CrossBorder Keep every episode free: buymeacoffee.com/fexingo