pk
Level 15
Level 15

Deductions & credits

@j_master_flash   

If active income  ( i.e. wages  or self-employment ), then  the most benefit you will get  is for US not to tax you on the income.    So you a choice of   Foreign Earned  Income Exclusion   OR    use Foreign Tax as a deduction  ( limited  by SALT limitations of US$10,000 )  OR  Foreign Tax Credit which again is limited ( i.e. allowable  portion ) by the lower of  allocated US taxes on the foreign income  OR actual amount paid ).

 

Thus we are back to your original question  -- how to get the FTC used up if you continue to have Foreign Income  and Foreign Tax Paid each year.  It is lost .  There is no curative path as long as the situation persists.

 

Sorry for the  "No Good" News.

 

pk