I lived outside the US for the whole year of 2020, which would qualify me for Foreign Earned Income Exclusion. However, my concern is regarding contribution to a Roth IRA, which according to my research requires non-excluded earned income. My goal is to minimize tax payment while still allowing for the IRA contribution.
My earned income totals less than 100K and is from two sources: 1) a foreign local employer who pays local taxes (which would qualify for foreign tax credit) and 2) a foreign company who pays me through their US branch office and files 1099-NEC with the IRS. No taxes are taken out of this income, so I am responsible for self employment tax + income tax.
Is it possible to exclude only one of the these income sources under the foreign earned income exclusion (such as the 1099-NEC income) and claim the foreign tax credit for the other source, or does all foreign earned income under the threshold need to be excluded if I claim the exclusion?
