Deductions & credits

If you meet the requirements, you can exclude up to $100,800 in foreign earnings from your taxable income. You can also take a credit (or deduction) for foreign taxes paid.  However, you won't be able to take a credit or deduction for taxes paid (or accrued) on foreign earned income/housing that you excluded (because excluded income/housing isn't being taxed.

To enter foreign earned income in TurboTax, please follow these steps:

1. Click on Federal Taxes > Wages & Income  [If you're in TT Home & Biz:  Personal > Personal Income > I'll choose what I work on]
2. In the Less Common Income section, click on the Start/Update box next to Foreign Earned Income and Exclusion.  (See Screenshot #1, below.)
3. On the screen Did You Make Any Money Outside the United States? mark Yes and click Continue.  (Screenshot #2)
4. On the screen What Form(s) Was Foreign Income Reported On? mark the selection that applies and click Continue. (Screenshot #3)
5. Continue through the screens, entering the requested information.

For more information on the Foreign Earned Income Exclusion, see Foreign Earned Exclusion on the IRS website.

1. Click on Federal Taxes > Deductions & Credits [In TT Home & Biz:  Personal > Deductions & Credits > I'll choose what I work on].
2. Scroll down to the Estimates and Other Taxes Paid section.
3. Click on the box next to Foreign Taxes.  (Screenshot #4)
4. On the Foreign Tax Credit screen, click on the Yes box.
5. Enter the information requested on the screens.