You'll need to sign in or create an account to connect with an expert.
Yes, that is correct. You are not allowed to claim a foreign tax credit on income that has been excluded from US tax. Here is the IRS reference with more detailed information.
I draw your attention to the last statement in the "Qualifying Foreign Taxes" section: "If you elect to exclude either foreign earned income or foreign housing costs, you cannot take a foreign tax credit for taxes on income you exclude. If you do take the credit, one or both of the elections may be considered revoked."
Also, the last bullet in the "Compliance Issues" section: "A foreign tax credit may not be claimed for taxes on income that you exclude from U.S. gross income."
The issue could also be related to taking the income exclusion at all. Be sure you have met the requirements for that foreign income exclusion. Here is a reference to help with those qualifications.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
taxes4739
Level 3
frydike
New Member
TaxHacks
Level 4
Aquarius5
Level 3
pr_resident_2023
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.