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Deductions & credits
You can have a foreign credit form 1116 OR the foreign income exclusion form 2555 but not both.
If you want to switch from the deduction to the credit:
- Open (continue) your return and search for foreign tax credit.
- Click the "Jump to" link in the search results, then keep going until you get to Do you want the deduction or the credit?
- Click Take a Credit and proceed.
Most people are better off taking the credit, as it's a dollar-for-dollar reduction in your taxes.
Related Information:
May 19, 2023
12:00 PM