The tabination agreement sets out what happens in such a case. For the self-employed, the aggregation agreement would tell them which country should pay the tax. The tax treaties cover income tax, while the aggregation agreement covers social security. The cap means that if you get a salary or self-employment income of less than $107,600, you can exclude all of your income as long as you qualify for the exclusion of foreign activity income. If you think you are qualified, you can claim the credit by submitting the following forms, if applicable with the help of an experienced CPA: If you are in a high income bracket, for example. B $250,000 per year, you can use the exclusion of foreign activity income in combination with the foreign tax credit. You can exclude $107,600 with the exclusion of foreign activity income, but you still have the tax capacity on the rest $142,400. . .