Foreign Earned Income Exclusion Q

Hi all, I hope this question hasn't been asked too many times. I wasn't sure what search terms to use to find it myself, so I'm sorry if it has been asked a lot. My OH and I currently live in the US and are planning to move to the UK next year. I'm a USC and he's a dual USC/BC. Our question is this: does the $87,600 exemption apply to each individual person, or is it the entire household? I ask because we are both professionals. Right now, our joint income is well above the $87k level, and we plan on continuing to file jointly since we are both USC's. So, can we multiply the $87,600 by 2 for the household, or can we only subtract the first $87600 from our taxes.

The answer to this could have a very large impact on whether or not we actually move. We refuse to pay double the amount of taxes...especially since this is basically taxation without representation...there's some irony there isn't there?

Thanks!
~Jamie

You each can claim up to 87K.

...especially since this is basically taxation without representation...there's some irony there isn't there?

It's not really taxation without representation because you still get to vote in elections at the both the federal and state level of where you lived in the US from abroad.  There were recently some state budget issues that some friends of mine felt strongly about, so I added my vote to theirs even though it doesn't actually affect me.  I let the residents vote to decide things like the local school board though :-)

It's not really taxation without representation because you still get to vote in elections at the both the federal and state level of where you lived in the US from abroad.  There were recently some state budget issues that some friends of mine felt strongly about, so I added my vote to theirs even though it doesn't actually affect me.  I let the residents vote to decide things like the local school board though :-)

FYI, not all states allow you to vote for anything local from abroad. California doesn't. But then they don't make you file state taxes either, so I suppose tit for tat!

California doesn't. But then they don't make you file state taxes either, so I suppose tit for tat!

Ooooh, you have just simplified my life immeasurably.  So, next year, no state taxes! Just federal ones!

You each can claim up to 87K.

Thanks discly! That takes a load off. It is highly unlikely we'd make over $170k/year, so now all I have to figure out is if we'll have to file taxes with the state of KY. My aunt works for the KY Revenue Service as a CPA, so I hope she can find out the answer for me.

The way this one works is that each member of a couple files a separate copy of the Form 2555.