Tax credits from HMRC

Oh, hypothetically here. If one were to have to pay tax on foreign income to HMRC, and if one were to apply for a tax credit on said income, would one include IRS, state tax, and either of OASDI and/or Medicare tax paid? Or would it only be IRS and State Tax that could be offset?

Just pondering.

Oh, hypothetically here. If one were to have to pay tax on foreign income to HMRC, and if one were to apply for a tax credit on said income, would one include IRS, state tax, and either of OASDI and/or Medicare tax paid? Or would it only be IRS and State Tax that could be offset?

Just pondering.

Good question and I don’t know the answer but there may well be circumstances that allow it.

In 2016 our combined US taxable income was high enough that all our qualified dividends and capital gains were taxed at 15%.  For HMRC that same year all those dividends and capital gains were in my wife’s name and because of her tax free allowances she paid far less tax than we paid in the USA but I don’t believe we could claim a tax credit from HMRC.

We also pay Louisiana State taxes on part of our income but I don’t know if I can claim an HMRC credit even though Louisiana doesn’t allow a foreign tax credit for the HMRC tax paid on that income. (As far as I know)

I'm thinking I read in the regulations that state taxes could be used as well as federal. I am curious as to the other two more than anything else. Not that it's going to matter, but I am just curious as to how they look at that sort of thing.