The foreign earned income exclusion will reduce your foreign earned income credit because you cannot take the credit on income that was excluded.
To claim the income exclusion you must:
- A U.S.
citizen who is a bona fide resident of a foreign country or countries for
an uninterrupted period that includes an entire tax year, (January 1 thru
December 31),
- A U.S.
resident alien who is a citizen or national of a country that has an
income tax treaty in effect with the United States, and who is a bona fide
resident of a foreign country or countries for an uninterrupted period
that includes an entire tax year, or
- A U.S.
citizen or a U.S. resident alien who is physically present in a foreign
country or countries for at least 330 full days during any period of 12
consecutive months.
To qualify for the tax credit you will need to meet the following requirements:
- The
foreign tax must be imposed on you.
- You must
have paid or accrued the tax.
- The tax must be the legal and actual foreign tax liability.
- The tax must be an income tax (or a tax in
lieu of an income tax)
The TurboTax program will make the necessary calculations for you.
