Can anyone tell me in what circumstance foreign tax deduction is better than foreign tax credit? We paid several thousand dollars in foreign taxes, comprised of tax on income from interest, dividends, stock capital gains, and property tax on a foreign home. Also paid foreign tax on a pension but it's a foreign social security equivalent that is taxable only by the foreign country by treaty, so that's not in play. We have a few years of taking the credit and have built up a lot of credit carryover which we've been advised will likely never be used. But also, we don't have enough to itemize deductions more than the standard $26k.
TT help box in the interview doesn't really help.
