pk
Level 15
Level 15

Deductions & credits

@kvinci , thank you for your response

1.  TurboTax will ask for a few different dates --- for form 2555 it will ask for 

         (a) start of the test window -- in your particular case and based on your response -- 01/01/2024

         (b) end of the test window  -- in your case 12/31/2024

         (c) when did you establish  foreign tax home -- 06/06/2023

2.   By including the full 2024 as the test period, it will include all your foreign earnings eligible for exclusion.

3.   Note that your passive earnings (-- i.e. rental income ) is not part of the Foreign Earned Income Exclusion.  For this passive income, you have to fill out a schedule-E for US purposes ( i.e.  Tell TurboTax that you have  rental income under business income tab,  recognize the gross rental income, deduct  allowable expenses , etc.  include  depreciation etc.  per US rules), and then , if and only if  Italy taxed this income, you have to fill out a form 1116  ( passive income category ) for redressing  the double taxation by both Italy and US on the same income.

If you need more help on this  ( FEIE ) or the rental income, please consider  adding to this thread or PM me and I will happy to walk you through the preparation of a correct  return.

 

Is there more I can do for you ?