How do you apply foreign taxes paid on foreign income earned (salary while working abroad) to avoid double taxation?

[benjaminkieffer]

Currently TurboTax output gives me zero taxable income, but still shows taxes due on the full foreign income amount.

[AmyC]

If you have foreign taxable income, you can file Form 1116 to report tax already paid to a qualifying country. See Claiming the Foreign Tax Credit with Form 1116 - TurboTax

If you are excluding the income under Form 2555, then you would not be receiving a tax credit.

[benjaminkieffer]

Actually in the Turbotax questionnaire, you will need to know in advance if taking the deduction or the credit is better for you, and if you want the credit, make sure this is the option you select in the section “Deductions and Credits”, “Foreign Tax Credit”.

Then the following questions will indeed fill out the “Foreign Tax Credit” section for the purpose of form 1116.

if you are not sure and click-through, then by default you take the deduction and form 1116 cannot be filed out.