Credit or Deduction

Instead of claiming a credit for eligible foreign taxes, you can choose to deduct foreign income taxes. Form 1040 or 1040-SR filers choosing to do so would deduct foreign income taxes on Schedule A (Form 1040), Itemized Deductions. Generally, if you take the credit for any eligible foreign taxes, you can’t take any part of that year’s foreign taxes as a deduction. However, even if you take the credit for

You may make an election to claim a credit or to change from claiming a deduction to claiming a credit at any time before the end of a special 10-year limitation period described in section 6511(d)(3) (or section 6511(c) if the period is extended by agreement). You may make an election to claim a deduction or to change from claiming a credit to claiming a deduction at any time before the end of the standard 3-year limitation period described in section 6511(a) (or section 6511(c) if the period is extended by agreement). See Regulations section 1.901-1(d) and Pub. 514 for more information.