Hi Dave,
It was not earned in Portugal, it's just SSI and pension income. But I researched it some more, and the Instructions for Form 1116 Foreign Tax Credit does say you have to have foreign income. I did not realize that. Publication 514 Foreign Tax Credit for Individuals doesn't make that clear. I guess that instead of deducting my Portuguese taxes from my US return, I will have to deduct my US taxes from the Portuguese return. But thanks anyway for your thoughtful response!
