US Expatriates Living in Colombia: Foreign Tax Credit Explained

For most Americans living in Colombia, the Foreign Tax Credit is the only tax strategy needed to avoid double taxation from both the Colombian and US governments. The Foreign Tax Credit, sometimes referred to as the FTC, reduces your American tax liability dollar for dollar by foreign taxes paid.

It is possible to use both the Foreign Tax Credit and Foreign Earned Income Exclusion at the same time, but there are some intricacies to claiming both. The most important key is both of these can Not be applied to the Same Earned Income. First, for 2022 the FEIE limitation is $112,000 of Foreign Earned Income. Any amount of income above $112,000 that is subject to Foreign Taxes, may claim the FTC. Something to keep in mind, you must pay the foreign taxes to claim the tax credit and there are pros/cons to using this strategy... We touch base on a few of these in our video and we will cover this topic more in depth in future videos.

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Dylan Quintilone PTIN P02055728

Disclosures:
Dylan Quintilone is an investment advisor representative with Copper Canyon LLC, a state of Florida Registered Investment Advisor. He provides tax services separately and independently of Copper Canyon LLC. He does not render investment advice, or financial planning services as a service within the tax business. In the event a tax customer wants to engage Mr. Quintilone for investment related services, Mr. Quintilone will be required to disclose material facts. The first disclosure will be to inform the tax client that investment advising is a separate service and Mr. Quintilone is required to deliver disclosure documents consisting of Copper Canyon LLC’s Form ADV Part 2 Brochure, Portfolio Management Contract and other required documents.

Copper Canyon LLC is a Registered Investment Advisor in Orlando, Florida. The firm is regulated by the Office of Financial Regulation, Division of Securities. More information can be found about Copper Canyon LLC CRD Number 286061, by visiting https://brokercheck.finra.org/ and typing Copper Canyon LLC into the search box

Copper Canyon LLC Firm Persons

Dylan Quintilone
Investment Advisor Representative
CRD Number 6732024

Paul Edward Clay
Investment Advisor Representative
CRD Number 7145606

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