Deductions & credits

If your US-sourced income was earned in Portugal, you would need to first enter it in the following manner.

1. Click on Federal 
2. Click on Wages and Income  
3. Scroll down to Less Common Income
4. On Foreign Earned Income and Exclusion, click on the start or update button.
5. Answer the questions until you get to a screen that asks if you like to exclude your foreign-earned income. At this point, you can exclude your income up to a certain amount. if you choose to exclude your income, here will be more qualifying questions that will determine if you can exclude the income or not. 
6. If not excluded, then you can claim a foreign tax credit for the amount of income earned outside the US.

Note, you can't claim a foreign tax credit and foreign income exclusion for the same income.  Here is how to claim the foreign tax credit if you do not claim the Foreign income Tax Exclusion.

1. Go to Federal
2. Deductions and credits 
3. Estimate and other taxes paid 
4. Foreign Tax Credit>start or revisit
5. When it asks We just need to check if you have any uncommon situations indicate I paid foreign taxes on income I earned while working in another country. 
6. At some point in the interview, it will ask if you wish to take a deduction or a credit. If you are able to itemize deductions, you may consider taking the deduction.
7. There will be questions in the next screen asking you the description of the Foreign Taxes paid and the amount.
8. If you find that this has no effect on your tax return, you may circle-back and choose you wish to take a credit.
9. Navigate and record the entries that the program asks for and when you reach the page that mentions Foreign Tax Credit Worksheet, this is where you take notice.
10. The first that you will be asked is what category of income is it, you will say General Category Income.
11. Next screen will say Country Summary, select add a country 
12. When it says Other Gross Income - XXXX, Here you put in the Gross Amount you earned in that country. 
13. Then you will navigate through the screens until you come to a screen that says Foreign Taxes Paid - XXXX, here is where you record the amount paid under Foreign Taxes.
14. Finish out the section. 

if your income is other than wages, let us know so we can instruct you how to claim the foreign tax credit on that income.

@luisemalloy550