Deductions & credits

Thanks again @DaveF1006 ! 

 

Solved one problem, but caused another, maybe. My refund has flipped to me owing $1800 including a late penalty of $65. This also seems incorrect. I did the calculation from your previous msg as I now have a number in line 24. The outcome of that calculation suggests I would only be credited around $2500, but Turbotax shows ~$6600 on line 20. My tax on line 16 is $10400, I paid $2000 already to the US and over $12000 to the country I live in, but can only get credited $6600. Unfortunately, I think I misunderstood how this tax credit works (assuming the point was to avoid double taxation) and now am stuck with a bill. My bad, most websites comparing the FTC and FEIE say the FTC is a dollar for dollar credit, none of them mention that there's a limitation to the credit.

 

Will this same thing happen next year where I won't be able to use enough credit to cover my US tax liability? I guess I will pass the FEIE tests by then but still curious...