no-no. I am talking about a simple case, foreign income around 20k$. She has not exceeded the allowed income limit for sure. I tried both calculations and I see that excluding under form 2555 is the best option. She was half of the tax year in a foreign country and her limit smaller than 107k$. But anyway it's much higher than income itself. My question not related to this.
I see that excluded foreign income is taxed doing simple exercise:
1) I am preparing all incomes, w2, etc except her foreign income and see the return amount;
2) I am adding her foreign income and excluding it under form 2555;
3) now the return amount is smaller.
All these cases you mention about being over the limit 107k$, comparing scenarios 1116/2555 - obvious from form 1116 / form 2555 instructions.
I am talking about detail which I see in the calculation but can't find in the official documentation.
I clearly see on both portals calculators are behaving in the same way and mentioned differences almost the same - around 10% from the foreign income.
