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Deductions & credits
The income would be foreign source income and the taxes paid would be foreign taxes.
The regulations state that "If you paid or accrued foreign taxes to a foreign country or U.S. possession and are subject to U.S. tax on the same income, you may be able to take either a credit or an itemized deduction for those taxes."
It is unclear if that applies to income that appears on your tax return but is not taxed due to the level of your income reported on your tax return, as is the case here.
I did not see any reference to distinguishing between taxable and non-taxable foreign income, based on your level of income, in the foreign income entry screens in TurboTax. So, you should enter your foreign taxes in that section and TurboTax will determine whether you are entitled to the credit based on your entries.
TurboTax guarantees the accuracy of their calculations, so you should complete the Foreign Taxes section under Deductions and Credits and TurboTax will make the necessary interpretation based on your entries.
Here is a link to the IRS article I referenced:
[Edited 2/16/22 at 1:27 PM EST]
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