Copyright 2000 Globe Newspaper Company
The Boston
Globe
March 12, 2000, Sunday ,THIRD EDITION
SECTION: BUSINESS; Pg. G2
LENGTH: 158 words
HEADLINE:
TODAY'S TAX TIP NATIONAL NEWSPAPER SYNDICATE;
WRITING OFF
FOREIGN TAXES ON INVESTMENTS
BYLINE:
GARY KLOTT
BODY:
If you're among the growing number
of Americans who have invested money in foreign stocks, bonds,
or mutual funds, there are two ways to write off any foreign
taxes paid on your overseas investment income.
You can claim a foreign tax credit on Form 1040, or you
can claim an itemized deduction on Schedule A. In most cases,
the credit will provide the most tax savings, because credits
provide a dollar-for-dollar offset against your taxes.
Deductions provide only a partial offset.
Until last tax season, many
investors settled for the deduction because the credit involved filling out the
complicated and confusing Form 1116.
But Congress eased the reporting
requirements for small investors. Most individuals no longer need to fill out
Form 1116 to claim the foreign tax credit.
As a general rule, you can
skip filling out Form 1116 as long as you paid $300 or less in
foreign taxes ($600 or less on a joint return).
LOAD-DATE: March 15, 2000 
