Tax question...foreign tax credit limitation

Your question does not provide enough information. Unswered questions are what country will you be living in? How wiill you be employed? Who is your employer (government like Saudia Arabia, U. S Company like Bechtel or foreign)? Will your wife be employed? How long will you be living in the country? How often will you be returning to the US and for how long. A foreign tax credit is available for individuals who pay taxes to other countries which is of no really bene fit to you. There is also a foreign earned income exclusion which is beneficial if you have the right employment situation and income along with the other factors shown above as questoins.

I agree with the other attorney that responded. You need to provide additional information to properly answer this question. If you are a U.S. Citizen you will still have to pay tax on your world wide income, however, you receive a credit for taxes you pay in the foreign country. Other considerations may apply depending on the country you are moving to.

I agree with the original poster. More information is required. Also, are you talking about the foreign earned income exclusion? If so you may want to look at IRS Publication 54.