You are correct. You can't do both a foreign tax credit and a carryover deduction in the same year.
We'll help you decide which one's best for you.
If you choose to take the credit (most people do), we'll attach Form 1116, Foreign Tax Credit if your situation requires it.
https://www.irs.gov/individuals/international-taxpayers/foreign-tax-credit
Here's how to get to Form 1116 for 2020:
- Make sure you've entered all your foreign income.
- From within your return, search for foreign tax credit and select the Jump to link in the search results.
- Answer Yes to Did you pay foreign taxes in 2020 or have credits to use from a prior year?
- Follow the instructions to get the credit or deduction.
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