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Foreign Exclusion and Tax Credit ( LO 7 . 6 ) Martha and Lew are married taxpayers with $ 2 , 6 5 0 of
Foreign Exclusion and Tax Credit LO
Martha and Lew are married taxpayers with $ of foreign tax withholding from dividends in a mutual fund. They have enough foreign income
from the mutual fund to claim the full $ as a foreign tax credit. Their tax bracket is 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.
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