Foreign Tax Credit Question

[CUSO]

Hello,

I have a client who was an expat and has accrued a massive tax credit to carryforward.  I do not specialize in foreign tax credits and was wondering if anyone knows how he can use his accrued tax credit to offset his ordinary income taxes?  Thank you!

[sjrcpa]

He probably can't. It can only be used against foreign income.

Since a lot of countries have higher tax rates than the US, a lot of people end up with foreign tax credit carryovers they can't use.

[CUSO]

Thank you for the response.  Do you know if income can be qualified as foreign sourced income if you are an employee working for a domestic company but working abroad for a short period of time?