A credit is allowed for foreign income taxes paid or accrued. The credit is limited to that particular part of U.S. tax due to foreign source income. It's not at all refundable, but any excess credit the carried to other years to reduce tax. U.S. citizens are expected to shell out taxes on all incomes made in foreign places. The proceeds are to be included inside income taxation statements and important taxes must be paid. However, for incomes that are taxed inside foreign countries, taxpayer...