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Calcimator

International Tax Calculator

Calculate Foreign Tax Credit (FTC) limitations and GILTI inclusions for US taxpayers with foreign-source income.

Inputs

$
$
$
$
$

Results

Foreign Tax Credit Allowed

$15,619.00

≈ 8 gaming PCs

Total US Tax Liability

$29,285.00

≈ 15 gaming PCs

Effective Tax Rate12.73%
FTC Limitation$15,619.00
FTC Carryover$4,381.00
GILTI Inclusion$0.00
Net GILTI Tax$0.00
US Tax Before Credits$44,904.00
Excess Limit0
How to Use This Calculator
  1. Enter US-Source Income and Foreign-Source Income before foreign taxes.
  2. Set Foreign Taxes Paid — creditable taxes reduce your U.S. tax on foreign income.
  3. Enter CFC Tested Income and QBAI if you have controlled foreign corporation income (GILTI).
  4. Select Taxpayer Type: Individual or C Corporation (affects GILTI treatment).
  5. Review Foreign Tax Credit Allowed and Total US Tax Liability.
  6. Foreign tax credit limitations are complex — consult an international tax attorney for multi-country operations.

How the result changes with Foreign-Source Income ($)

Foreign-Source Income ($)Foreign Tax Credit AllowedTotal US Tax Liability
$1,000,000.00$20,000.00$355,500.00
$3,500,000.00$20,000.00$1,280,500.00
$6,500,000.00$20,000.00$2,390,500.00
$9,000,000.00$20,000.00$3,315,500.00

What each input means

US-Source Income ($)
Income from US sources (wages, investments, business income).
Foreign-Source Income ($)
Income earned from foreign sources before foreign taxes.
Foreign Taxes Paid ($)
Total creditable foreign income taxes paid or accrued.
CFC Tested Income ($)
Controlled foreign corporation tested income for GILTI (leave 0 if not applicable).
Qualified Business Asset Investment ($)
Aggregate adjusted bases of depreciable tangible property used in CFC's trade or business (for GILTI QBAI exemption).
Taxpayer Type
C-Corps get Section 250 deduction (50% GILTI exclusion). Individuals include 100% of GILTI.

What each result means

Foreign Tax Credit Allowed
FTC you can claim, limited to the lesser of foreign taxes paid or the FTC limitation.
Total US Tax Liability
Net US tax after FTC and including any GILTI tax.
Effective Tax Rate
Total US tax as a percentage of worldwide income.
FTC Limitation
Maximum FTC = (foreign source income / worldwide income) x US tax.
FTC Carryover
Excess foreign taxes that can be carried back 1 year or forward 10 years.
GILTI Inclusion
Tested income minus 10% deemed tangible income return on QBAI.
Net GILTI Tax
US tax on GILTI inclusion after Section 250 deduction and deemed-paid FTC.
US Tax Before Credits
Federal income tax before applying the Foreign Tax Credit.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    US-Source Income ($) = 150000, Foreign-Source Income ($) = 80000, Foreign Taxes Paid ($) = 20000, CFC Tested Income ($) = 0 = 6 input(s) provided
  2. Calculate Foreign Tax Credit Allowed
    Foreign Tax Credit Allowed = min(foreignTaxesPaid, ftcLimit)
    15619 = $15,619
  3. Calculate Total US Tax Liability
    Total US Tax Liability = usTaxBeforeCredits - ftcAllowed + netGiltiTax
    29285 = $29,285
  4. Calculate Effective Tax Rate
    12.73 = 12.73%
  5. Calculate FTC Limitation
    FTC Limitation = taxableIncome > 0
    15619 = $15,619

Engine last updated . Checked against 2 independently-derived tests — how we verify calculators.

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