The Peck Group, LC
  • Comprehensive Tax Law Representation Since 1995

    We handle every aspect of tax law: preparing tax returns, representing clients during audits, resolving IRS and state tax controversies, and creating tax planning strategies for the future.

  • Problems With The IRS Or State Tax

    Our attorneys are committed to providing efficient and effective tax solutions for individuals and businesses in Georgia and nationwide.

  • Planning For The Future

    Our lawyers help individuals and businesses with all aspects of estate and tax planning. We help our clients use proactive strategies to minimize tax implications in the future

  • Changing The Balance Of Power

    Does it feel like the government has all the power? Taxpayers have rights, too. We use our knowledge of tax law to shift the balance of power and ensure that your rights are protected.

  • Tax Solutions … And Peace Of Mind

Foreign taxes and United States credits

Both U.S. residents and citizens must pay tax on income earned from foreign sources, but there may be a credit on your United States taxes coming your way if you paid income taxes to another country.

Deciding Between Credit or Deduction

Your foreign tax credit can benefit your bottom line as a credit on your taxes or as an itemized deduction. Taking the credit will allow you to reduce your United States income tax by the actual dollar amount you paid or accrued to a foreign entity. Choosing the deduction route enables you to reduce the income that is subject to taxation.

It may be advantageous to take either a deduction or credit depending on the rest of your taxation situation in a particular year. If you reconsider your decision within ten years from which the taxes were due, you can file an amended return in most cases.

Contesting Your Liability?

If you are contesting the amount of tax due to a foreign entity, you can take a credit for it on your United States taxes only if you pay the fee while you appeal it. You can adjust the credit when the appeal is over, and you know the final amount of foreign taxation.

Exchange Extras

To figure out your taxes, you will need to convert the amount you paid a foreign entity into U.S. dollars. The rate of exchange for income taxes paid to a foreign country is the rate on the day that you paid your taxes in that country.

There are many variables involved in determining the correct course to take when planning your foreign tax exposure. To determine what that is in your situation, it is important to get legal advice from experts in foreign taxation and its implications for your United States tax return.

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The Peck Group, LC
5855 Sandy Springs Circle N.E., Suite 190
Atlanta, GA 30328

Phone: 770-884-6914
Fax: 770-933-2369
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