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A credit is allowed for foreign income taxes paid or accrued. The financing is limited certain part of You.S. tax due to foreign source income. It isn't refundable, but any excess credit become carried to other years to reduce tax.
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Remember, a personal exemption of $3650 isn't deducted on tax but on your taxable income. Say for example your filing status is 'married filing jointly' with original taxable income of $100,000. This will make you under the marginal tax rate of 25%. The actual money you will save on personal exemption is $912.50 (calculation is simple: $3650 multiplied by 25%). For appreciate spouse, that will be multiplied by two in which means you save $1825.
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