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Deductions & credits

The foreign income exclusion for 2021 is $108,700 per qualifying person. If your income exceeded the exclusion amount, you can claim a foreign tax credit for the excess.

 

Both the credit and the deduction are entered in the same place. Here's what you do:

  1. Make sure you've entered all your foreign income.
  2. From within your return, search for foreign tax credit and select the Jump to link in the search results.
  3. Answer Yes to Did you pay foreign taxes in 2021 or have credits to use from a prior year?
  4. Follow the instructions to get the credit or deduction.

Where do I enter the foreign tax credit (Form 1116)


     
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