Regarding your first question, the Foreign Tax Credit (FTC) for taxes paid in the resident country (Portugal, in your case) based on "Income resourced by Treaty" can apply to distributions from traditional IRA and 401(k), including Roth conversion. These distributions qualify under the treaty provisions. Since the money is taxable in both countries, you can claim the FTC.
To claim the foreign tax credit for taxes paid to Portugal
- Go to Federal
- Deductions and credits
- Estimate and other taxes paid
- Foreign Tax Credit>start
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