No. Section 901(a) permits a taxpayer to claim a (non-refundable) credit against his U.S. income tax. When a tax is non-refundable, the credit is not allowed to exceed one’s U.S. taxes. However, while it is a non-refundable credit, the credit may be carried either forward or backward to other years when one’s credit exceeds his U.S. taxes.
Is the Foreign Tax Credit a Refundable credit? was last modified: March 24th, 2018 by David Klasing