jtax
Level 10

Retirement tax questions

The foreign earned income exclusion does not apply to Pension/IRA income income. The income needs to be "earned" not investment income. (see https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion-what-is-fore...

 

[See also I.R.C. 911(a)(1) "foreign earned income" excluded; 911(b)(1)(B) does not include amounts received from pensions. https://www.law.cornell.edu/uscode/text/26/911]

 

However, the foreign tax credit would apply. Because US taxes are so low compared to other countries, this will usually wipe out US taxes on the same income. But not always.

 

See this for how to enter the foreign tax credit. https://ttlc.intuit.com/community/entering-importing/help/where-do-i-enter-the-foreign-tax-credit-fo...

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