My husband and I lived in France and always claimed the Foreign Earned Income Exclusion (form 2555). We moved back to the US in the middle of 2017 and may want to claim the Foreign Tax Credit instead (Form 1116). Here's the question, which the IRS didn't even have anyone available to answer:

Fact: we excluded our 2016 French income under the foreign earned income exclusion (2555) on our 2017 US taxes.

Fact: we paid French taxes (SO much money) in 2017, on the French income from 2016.

Question: If we excluded the 2016 French income on the previous tax return, can we use the Foreign Tax Credit to deduct taxes paid in 2017, on the 2016 French income?

I've always done my own taxes and know the law fairly well, but this one is stumping me and I don't want to get in trouble. However, claiming the Tax Credit this year will save us about 4,000 more in taxes than using the earned income exclusion as in previous years.

Thanks to anyone who can help!