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Deductions & credits
Yes, while a US citizen, you may apply for the Foreign Income Exclusion if you meet the terms of the Physical Presence Test or Bonafide Presense Test. Also read this link that discusses the Foreign income Exclusion more in detail.
You may also claim a foreign tax credit if you are unable to exclude your foreign income from your return. You can't take a Foreign Tax Credit or exclude your income at the same time. There are two exceptions however.
- The maximum amount of Foreign Earned Income that can be excluded in 2023 is $120,000. If you make more money than that, you can claim a foreign tax credit for income in excess of $120,000.
- If you are unable for some reason to exclude your foreign income, you may claim the foreign tax credit instead.
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‎February 22, 2023
1:07 PM