I am having the same issue for the last two years. While my wife’s foreign income qualifies for exclusion, including it in our calculations increases our tax liability significantly. I have spent 2 hours with TT experts and they cannot explain why the software does that. I’m trying to get a call with a CPA to explain. Beyond the mechanics of the software. Can someone explain WHY excluded income does this? There’s no way that excluded income “layered” onto mine would add tens of thousands of addition tax. Or?
