@DaveF1006 thanks for your reply. Coming back to the same question again this year as I didn't need to dig deeper last year.
Based on the examples you gave for cash and accrual method, I feel like I am leaving some portion of foreign taxes on table without claiming any credit for it. Am I right? Or is there a way to claim credit for this left out taxes in previous or next US tax return?
For simplicity, let's say I am going to stick with cash basis method forever. My foreign tax year runs from April to March of next year.
For April 2022 - March 2023 period I have $5000 foreign taxable income, and pay $1000 in foreign taxes for this period in June 2023.
For April 2023 - March 2024 period I have $10000 foreign taxable income and pay $2000 in foreign taxes for this period in June 2024.
For cash basis, could you please explain what will go on my US 2022, 2023 and 2024 tax returns?
