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Can the VAT (value added tax) that you have to pay on goods in foreign countries be deducted on Schedule A if you haven't received a refund for it from the country?

2006-10-14 08:17:29 · 2 answers · asked by Sunnny 2 in Business & Finance Taxes United States

2 answers

Nope.

However, you can deduct either your state income tax or sales tax whichever is higher.

You will either have kept all your receipts or use an IRS table to determine the amount. The IRS amount is estimated based on your adjusted gross income and filing status.

Best wishes.

2006-10-14 08:47:28 · answer #1 · answered by JQT 6 · 0 0

No, foreign income taxes can only be deducted when foregin income is included on a taxpayers return (subject to certain limitations)

2006-10-18 14:13:59 · answer #2 · answered by dillon Y 3 · 0 0

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