I thought that I had already asked the following, but I never saw it. In light of what is written above about the health tax, it could be used as a foreign tax credit, but NOT as a medical deduction. Did I read this correctly?
I thought that I had already asked the following, but I never saw it. In light of what is written above about the health tax, it could be used as a foreign tax credit, but NOT as a medical deduction. Did I read this correctly?
The only type of foreign tax that the IRS mentions in Topic 856 is "income" tax (paid), which can be taken as a credit or as a Schedule A deduction. You are speaking of the equivalent of U.S. "payroll" taxes, which is a different matter (IMO).
I decided to extend my unpaid research by another 30 seconds and saw in Publication 514:
"Foreign Taxes for Which You Cannot Take a Credit"
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