Can I claim both the foreign earned income exclusion and the foreign tax credit in the same year?

You can use both, but not on the same dollars of income. Once you exclude income with the Foreign Earned Income Exclusion, you cannot also take a Foreign Tax Credit for the foreign taxes paid on that excluded income; you would be double-dipping. The credit is available only on the foreign income that exceeds the exclusion or on income the exclusion does not cover, like passive investment income. In high-tax countries the Foreign Tax Credit often beats the exclusion outright because it can wipe out your U.S. tax on that income and generate carryover credits. In low-tax or no-tax countries, the exclusion may serve you better. Many expats model both. The IRS explains the interaction in the Form 2555 and Form 1116 instructions on irs.gov.