Comment Re:Okay... and? (Score 1) 316
That's very much incorrect. It's treated as a deduction
Read the site.
If you paid or accrued foreign taxes to a foreign country on foreign source income and are subject to U.S. tax on the same income, you may be able to take either a credit or an itemized deduction for those taxes.
You're assuming it is always option 2 (acts as a deduction), and ignoring option 1 (acts as a credit).