@Dave I have this same question for my daughter, but I can't figure out the numbers from the example. I don't do well with word problems, but I do OK with spreadsheets and formulas.
Canadian wage income is $187,000 (converted to USD using the IRS average currency rate).
No US income at all - lived and worked in Canada all year - bona fide resident in 2024.
Canadian taxes paid $64,086 (in USD)
Files married filing separately (spouse is not a US citizen and does not file in the US)
Does not itemize - standard deduction.
Has $15,500 in allowable housing expenses.
I'm not sure how to calculate what goes in this box:
2024 Foreign Earned Income Excluded Less Related Deductions
Is it the $187,000 - the exclusion of $126,500 - allowable housing expenses divided by foreign taxes paid?
and I think
Total foreign earned income less related deductions has to be the $187,000?
Where does the $14,500 for the standard deduction come in?
Any assistance would be greatly appreciated.
Thank you.
