Tax Policy Center

Fiscal Facts

June 6, 2022
In TY 2019, 6% of total individual income tax returns claimed the foreign tax credit. Among those with under $25,000 in adjusted gross income (AGI), only 0.6% claimed the credit, whereas 64% of those with AGI over $1 million claimed the foreign tax credit
The foreign tax credit prevents double-taxation of foreign-source income. In tax year 2019, only 6% of individual filers claimed the foreign tax credit, while 64% of taxpayers with adjusted gross income over $1 million claimed it.