Im an everyday US citizen who has a few mutual funds and etfs in a garden variety retirement plan with the popular big box brokers. Im flabbergasted how much effort it is to deal with a few hundred dollars of foreign taxes paid that are reported on my 1099s. it is taking me hours to research how to answer all the Q's that TT is asking me about this.
Practical Question:
taking a credit seems to be better than a deduction...but I notice that TT is telling me im only allowed to take a credit for about 1/3 of the foreign tax paid . this seems to happen every year and I now have accumulated (over 7 years) about 6x more than what im allowed to take as credit in a given year
-if i take a deduction rather than a credit, will that allow me to use up more of the accumulated amt?
-after 10 years, do i start losing some of the accumulated amt?
-what if anything can i do to be able to use more in a given year?
thanks!
