Re: Foreign Tax Withheld - Bottom Line Effect

That brings me back to my other question. Are you allowed

> a credit for foreign taxes that were withheld even though > you might not have owed them and possibly could have had > some of them refunded had you done the paper work?

No

You may do this only if the taxes payable exceed the treaty withholding rate. If you are entitled to some back, you can only the claim the amount payable. That being said, there are those who will use the amounts withheld as as amounts paid. They are gambling that the taxing authority will not catch this.

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parrisbraeside
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