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Topic: Foreign earned income exclusion and tax credit  (Read 1081 times)

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Foreign earned income exclusion and tax credit
« on: February 01, 2016, 12:20:30 PM »
Hello,

This is my first year filing on my own, in previous years I'd used an accountant. I noticed last year he filed both the foreign earned income exclusion, and the foreign tax credit. The credit ultimately came to zero, so I'm not sure why this was filed, and I didn't pay anything on my taxes because of the income exclusion.

Is there a point for me to file the tax credit along with the income exclusion? My income fits within the income exclusion again, so I don't need to pay anything. If the credit can potentially get me a refund then that would be great, but it doesn't look like this is possible. Is there a point to me filing both forms, or can I skip the foreign tax credit this year?


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Re: Foreign earned income exclusion and tax credit
« Reply #1 on: February 01, 2016, 02:52:30 PM »
Hello,

This is my first year filing on my own, in previous years I'd used an accountant. I noticed last year he filed both the foreign earned income exclusion, and the foreign tax credit. The credit ultimately came to zero, so I'm not sure why this was filed, and I didn't pay anything on my taxes because of the income exclusion.

Is there a point for me to file the tax credit along with the income exclusion? My income fits within the income exclusion again, so I don't need to pay anything. If the credit can potentially get me a refund then that would be great, but it doesn't look like this is possible. Is there a point to me filing both forms, or can I skip the foreign tax credit this year?

The FEIE is used to exclude foreign EARNED income up to some threshold. For tax on earned income above that limit and for tax on other types of income and gains you use the FTC.


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