Which statement is true regarding the foreign tax deduction?

The statement that it must be listed on the tax return to be valid accurately describes the foreign tax deduction. In the U.S., taxpayers must report and specifically list any foreign taxes paid if they wish to claim the corresponding deduction. This requirement ensures that the IRS has a record of the taxes paid and can verify the amounts claimed. By including the foreign tax on the tax return, taxpayers can ensure compliance with IRS rules and facilitate the deduction process.

Other options suggest misunderstandings about how the foreign tax deduction works. For instance, claiming the deduction without itemizing deductions is not possible, as this deduction is part of the itemized deductions. Similarly, the notion that it applies universally for all foreign taxes is incorrect, as it is subject to specific limitations and eligibility criteria. Lastly, suggesting that it only applies to citizens living abroad is misleading, as U.S. citizens and residents can claim the deduction regardless of their residence status, provided they have paid foreign taxes.