National Insurance: Is it an income tax?

Our US tax preparer (who is a novice at international tax law) tells me that he doesn't think he can deduct our National Insurance as a foreign tax credit, as it's not technically an income tax. This confuses me, as it's deducted from my husband's paycheck and is based directly on his income.

Can anyone confirm or clarify? (This is our first expatriate US tax return.)

Also: Can we deduct any other taxes, like council tax, road tax, or TV licensing fee?

Your US preparer is 100% correct that UK NI is NOT an income tax.  There are IRS Regulations defining income taxes.

However the UK Treasury treats NI as part of the UK Government's tax take, so this is a little unfair but such is life!

You can certainly deduct rent, council and TV tax as foreign housing costs on form 2555 so do supply these details to your tax preparer.

Thanks, Guya. Good to know our guy knows his stuff.

Just to be clear on your last point: Since this is our first year in the UK (we moved here in August), we're not yet eligible to deduct housing costs, etc., on Form 2555 -- right?

Sure you can deduct them (if they are above the base amount).  The only difference in the first year is that you can't file the form 2555 until you have had a qualifying period (generally at least 330 days) overseas; so most folks file more extensions in the year they move.