Form 2555 or form 1116 or both?

[tax1111]

Taxpayer is a US citizen living and working overseas. He earned foreign compensation $360k in 2020. I used to use only foreign tax credit for his returns. But now, it seems that if I apply foreign earned income exclusion $107k first and then apply the foreign tax credit for the unexcluded amount, it lowers his tax by $1k.
My questions is:
1. Is there any drawback for using both form 2555 and form 1116 vs. only use form 1116?
One thing I can think of is that if use both forms, foreign tax paid allocated to the excluded income is lost. Any other drawbacks?
2. also, he will be required to use form 2555 in future years (with or without form 1116 depending on his income level) unless he elect to revoke the form?
3. is it normal to have a better tax outcome when using both 2555 and 1116 forms than only using form 1116?
Thank you so much!

[Catherine]

Each year stands alone in terms of the choices made; you can choose what works best, overall, for your client for each tax year.  The "drawback" is having to do multiple scenarios as to whether tax credits, tax deductions, or income exclusions give the best result.  

The taxpayer cannot double-dip; no taking deductions or credits for taxes paid on income excluded from US taxation.  However,  you don't have to exclude all the income, either (just not above total earned income, or above the annual maximum).  So if, for example, the absolute best result was to exclude half the income, and take a tax credit (or deduction) for the other half, I believe that is allowed.  A royal pain in the hindquarters to determine, though!