Deductions & credits

hi, thx for coming into the discussion.

Yes, I did.

so here is how I found this:

1) I entered most of the return info. IE w2 income, dividends etc...

2) I saved all return forms in pdf.

3) I added foreign income

4) I excluded foreign income under 2555 as wife eligible

5) I saved all return info again and compared side by side.

 

Here is the outcome I see analyzing the first pages of the form 1040

1) I clearly see that foreign income is present in the second pdf, as it's a special mark on line 1 as FEC and value I entered as foreign income;

2) AGI is the same on both pdf's; 

3) Foreign income excluded in the second pdf. I see it as a value like that (value). The same as I have for foreign income

4) Here is a surprise, tax bills are different on line 16. And it's bigger in the pdf where I see all info related to foreign income.

No other changes I did except entering foreign income and excluding it

I see a difference in 12% in tax bills between these 2 pdf's

I see some page in return named "Foreign Earned Income Tax Worksheet - Line 16"

And there I see computation with FEC amount. Calculated tax there - 10%. But tax bill diff - 12%.

It's the second magic thing related to foreign income and exclusion.