American living abroad -- FOREIGN TAX CREDIT OR DEDUCTION?

[Eleusis]

Okay, so I've cracked open my book and it is a big book of possible forms to fill out. Going to start with the 1040 (of course) and now I have to work out whether to take Foreign Tax Credit or a Foreign Tax Deduction... What do others do?

Oh, bugger, I do hate April 15!

What, am I the only schmuck just now doing my taxes???

I will ask my OH what the difference is and come back to you

Thanks. Is he American? Are you in the UK?

Yeah we are in UK and he is American

He takes the credit - he worked it out both ways and the credit was better but I think it depends on what you earn

He reckons you have until June 15 to file if UK resident

Yes, but I think I have to file for an extension for the 15 June dealine, right? I've never filed for the extension but I'm pondering doing it now, if I still can.

If you qualify as resident abroad for the year then you get the extn automatically

Thanks for your help.

Hi Eleusis -- I use form 2555, the foreign tax deduction. As it has worked out better for me. Don't forget to claim for all your dependants too. As long as you end up at zero