A credit is allowed for foreign income taxes paid or accrued. The finance is limited to that part of U.S. tax due to foreign source income. It isn’t refundable, but any excess credit can be carried to other years to reduce tax.
Marginal tax rate could be the rate of tax as opposed to on your last (or highest) regarding income. In the last described example, the individual is being taxed with a marginal tax rate of 25% with taxable income of $45,000. May well mean he or she is paying 25% federal tax on her last dollars of income (more than $33,950).
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