March 4, 2024
![Foreign Tax Credit, 2021 Foreign Tax Credit, 2021](https://www.taxpolicycenter.org/sites/default/files/fiscal-facts/ff_screenshot_3.4.2024.png)
Fact:
The foreign tax credit prevents double-taxation of foreign-source income. In tax year 2021, only 7% of individual filers claimed the foreign tax credit, while 62% of taxpayers with adjusted gross income over $1 million claimed it.