Foreign Tax Credit U.S.A
Code Section 901:
According to this code section if a U.S Citizen, a resident alien or a domestic corporation pays foreign income taxes it can claim credit for it when filing USA taxes.
Source of Income Rules U.S.A
Refer Code section 904: Limitation on Credit
Source of income rules play a very vital role when it comes to computation of foreign tax credits limitation of a taxpayer. If foreign taxes paid are in excess of foreign tax credit limitation these are called excess credits.