rjs
Level 15
Level 15

Get your taxes done using TurboTax

@Industrialmaterial  

 

Read the earlier replies in this thread, above yours, especially my first reply at the beginning of the thread. It explains the mechanics of the tax calculation and why the foreign earned income exclusion increases your tax.


Note that the excluded income is not "layered" onto your income. It's the other way around. Your income is "layered" (stacked) onto the excluded income. That's why your tax increases so much.


For 2024 the maximum amount of foreign earned income that can be excluded is $126,500. Any foreign earned income above that amount is taxable.