Yes, you can claim the FEIE up to $108,700 and claim a foreign tax credit for the amount of Foreign Tax levied on the excess income over the exclusion amount. You will report these two events as separate taxable transactions.
- First you will report to exclude $108,700 of your income by:
- Click on Federal
- Click on Wages and Income
- Click on I'll choose what I work on (if shown)
- Scroll down to Less Common Income
- On Foreign Earned Income and Exclusion, click on the start or update button.
- Answer the questions as these appear in the interview to claim this exclusion.
- Once claimed, you will now need to claim your foreign tax credit on the excess income over $108,700.
To claim the Foreign Tax Credit.
- Go to wages and income>deductions and credits>
- estimates and other taxes paid>foreign taxes.
- As you answer the questions throughout the interview, keep in mind two things.
- When it asks for income, make sure you enter the excess amount.
- When it asks for the category of income, you will say this is General Category income
- Check back at us as often as you need if you have questions. we are here to help.
@JM1031
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