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TAX TIPS
Benefit from Your International Fund
by Kevin McCormally

You don't have to work abroad to get a foreign tax credit. You may deserve this tax saver if you own shares in a mutual fund that invests in foreign securities.

If you have an international or global fund, check your Form 1099-DIV to see if the fund paid taxes on your behalf. If so, you can claim the amount either as an itemized deduction or as a tax credit.

The credit is almost always worth more, and there's a good chance you can claim it without going through the notoriously complicated Form 1116 that used to be required of everyone who wanted this break.

If your only foreign income is from interest and dividends -- as it may be if your only foreign income comes from investments in mutual funds -- and the total is not more than $300 if you file a single return or $600 if you file jointly, you can claim the credit without filing any special forms. Just enter the appropriate amount on line 44 of your Form 1040 and subtract that amount from your tax bill. Bon appetit!