Do I need to do anything (e.g. file an amendment) if I claimed the foreign tax credit (cash method) on my return for 2023 and then got a refund from Germany in 2024 for tax paid in 2023 (because of deductions)?
My tax preparation software said I don't need to do anything, and when I sent an email to the support they also confirmed I don't need to do anything and can leave the credit as is. I've also heard you are supposed to subtract the refund you receive from the foreign tax you paid in the year you received the refund (which kind of makes sense with the cash accounting method?) for that years FTC calculation. And according to my understanding of the IRS documentation (which isn't super easy to understand), I would have to file an amendment to correct the FTC for the year the refund was for.
Does anyone have experience with this in Germany or in other countries?