A credit is allowed for foreign income taxes paid or accrued. The finance is limited to that part of Ough.S. tax due to foreign source income. It's not at all refundable, but any excess credit could be carried to other years to reduce tax. The Citizens of us must pay taxes on their world wide earnings. That a simple statement, but additionally an accurate one. Require pay federal government a area of whatever you earn. Now, hand calculators try to cut back the amount through tax credits, ...