Foreign Exclusion and Tax Credit $($LO $7\mathrm{.}6)$

Martha and Lew are married taxpayers with $$2,650$ of foreign tax withholding from dividends in a mutual fund. They have enough foreign income

from the mutual fund to claim the full $$2,650$ as a foreign tax credit. Their tax bracket is $15$ percent and they itemize deductions. I

Should they claim the foreign tax credit or a deduction for foreign taxes on their Schedule A$?$

If required, round your answer to the nearest dollar.

The foreign tax deduction will result in a $$,$ tax benefit where as claiming the foreign tax credit yields a $

Therefore, the taxpayers should claim the foreign tax credit. $$