Net Investment Income Tax (niit - form 8960) - avoid double taxation

Hi -
I'm using an online tax program to do my taxes and noticed this year an extra tax.  It's small ($30), but seems to be the new Net Investment Income Tax. 

I'd be happy to pay this on my US interest income ($100), but it seems to include my overseas investment income (not much) which I've already paid taxes on here in the UK, already have on my form 1116, yet I seem to have to pay taxes again. 

Not too concerned for this tax return, but in the future, it seems like this could be a big problem. 

Is there any way to offset this tax?  The IRS and Treas seem to say that FTC cannot be used.

Thanks!

If you are a resident of a foreign country the NIIT doesn't apply. However, I believe the saving clause catches US citizens and that NIIT cannot be offset by foreign taxes paid. It's not a double taxation, it's a tax in excess of any existing income tax.

Thanks for the info.  I can see your point on taxation - much like income versus social security tax are not seen as double taxation. 
Being a US citizen and resident in the UK, I don't normally pay US social security taxes and can use tax credits on income taxes.  Seems that I'll have to pay this one if I read your reply correctly...

NIIT occurs when your MAGI (modified adjusted gross income) is over the NIIT threshold. If you use form 2555, your MAGI is recalculated. From the text below:

"The 3.8 percent tax applies to the lesser of 1) net investment income or 2) the excess of the taxpayer’s MAGI over the threshold."

http://www.mossadams.com/articles/2014/february/net-investment-income-tax

You're correct, FTC can not be used to offset NIIT. The best way to avoid NIIT is to reduce your MAGI. Easier said than done, but review your sources of income and explore the possibilities. Here's some suggestions for business related income:

http://www.forbes.com/sites/kellyphillipserb/2014/06/18/outwitting-the-niit/

The links were useful, thanks. 
It looks like MAGI puts back in what 2555 takes out.  The reason that I hit the MAGI limit is due to reporting married filing separately which I've done in the past to avoid having to report on all of my NRA wife's tax related info. Changing to filing jointly is probably the most straight forward approach to removing the need to pay NIIT.