@rwh03001 there is really not much you can do --- FEIE pushes you into higher bracket. Foreign tax credit would compute using the total foreign income, thus you are at the higher bracket but then instead of subtracting the tax on the excluded income, it will recognize the full foreign taxes paid. On form 1116 where you claim the foreign taxes credit however, there is a limitation --- the foreign tax credit allowed will essentially be based on a ratio of total Foreign Income to World income but never more than what US would have taxed you on that income -- two limitations.
There is no winning on this
Is there more I can do for you ?
