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What is the question? Which exclusions are you referring to maybe we can help here.
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We live overseas and qualify for the Foreign Earned Income Exclusion per both physical presence and Bona Fide Residence tests (we are documenting it under Bona Fide Residence). We are married filing jointly. My salary alone is $137K, and the 2021 exclusion per person is $112k. My husband is paid in the local economy and is part time so has a salary of $20k. Turbotax calculated that I can only exclude $112k and my husband can exclude his full salary; meaning we must pay taxes on the remaining amount. However, the IRS website seems to indicate that we can exclude a total of $224k -- i.e. $112k for each of us. We are both US citizens and have no other citizenship, don't have to pay local taxes etc.
This is one of those instances where the language in the IRS website is ambiguous at best. There is a statement though in the website that states "For tax year2022, the maximum exclusion is $112,000 per person." This means that each person of a married couple can only exclude a maximum of $112,000 per person for a maximum of $224,000 per couple.
This means you will pay foreign tax on the $25,000 additional income from your income but you can claim a foreign tax credit that is levied on that $25,000 additional income if you are taxed by the foreign country where you now live and work.
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