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 — Tue, 04 Jun 2019 19:43:49 GMT

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.

No, taking a foreign tax credit or exclusion in one year...

DDollar — Tue, 04 Jun 2019 19:43:52 GMT

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.

topic 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?) in Deductions & credits

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?)

No, taking a foreign tax credit or exclusion in one year...