Can you take a foreign tax credit in 2015 and still take a foreign income exclusion in 2016? Or is there a precendent that you cannot reverse (once tax credit always?)

ComplexT · ‎June 4, 2019

In 2014 we took a foreign income tax exclusion, in 2015 we took the foreign income tax credit. This year in 2016, I think it is better for us to take the foreign income exclusion again but is there a reason we cannot? This section of TTax is always a bit confusing. My husband meets the criteria of physical presence, was not in US more than 15 days total in 2016.

DDollar · ‎June 4, 2019

No, taking a foreign tax credit or exclusion in one year does not set a precedent so that you cannot claim the other in a subsequent year. If it is more beneficial for you to take the Foreign Tax Exclusion for 2016 you can do so if you qualify.

View solution in original post

Can you take a foreign tax credit in 2015 and still take a foreign income exclusion in 2016? Or is there a precendent that you cannot reverse (once tax credit always?)

Deductions & credits