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Revision as of 12:29, 20 May 2026
A credit is allowed for foreign income taxes paid or accrued. The credit is limited to that particular part of U.S. tax due to foreign source income. It's not refundable, but any excess credit can be carried to other years to reduce tax.
B) Interest earned, however, not paid, during a bond year, must be accrued at the end of the bond year and reported as taxable income for the calendar year in the fact that bond year ends.
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