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alvin
New Member

How do I get the foreign earned income exclusion?

I worked for a US company that was based in Qatar.  I earned income there but I'm not sure how it works for the deduction or if deductions apply to my case.  I would like to know if I get the tax break or not.
1 Reply
MargaretL
Employee Tax Expert

How do I get the foreign earned income exclusion?

You may be able to qualify for the foreign income exclusion if you were physically present in Quatar for 330 full days during the 12 month period.  When going throughTurbo Tax, you'll be asked about the 12 month period -when it began and when it ended. Based on your dates, the program will tell you if you qualify...   

If you have a W-2, enter it as usual, and indicate that you worked outside the U.S. Then follow steps below to see if you qualify for the exclusion.  If you are self-employed, enter your income in self-employed section and then use steps below to for exclusion questions:

  1. Federal Taxes
  2. Select Wages and Income 
  3. Scroll down to Less Common Income
  4. Select Foreign Income and Exclusion - Answer “Yes” to “Did you make any money outside the United States?” and follow the interview questions. You will be asked to enter income from a U.S company, a foreign company, self-employment income, housing allowance, income from a Form W-2, 1099-MISC, schedule K-1 from a business or simply cash income. Please continue through the interview to see if you qualify for the foreign income exclusion.

If you have paid any foreign tax on the income, please enter it in the Deductions & Credits section; you may qualify for the foreign tax credit on the foreign income that was not excluded from tax:

  1. Federal Taxes
  2. Deductions & Credits
  3. Scroll down to Estimates and Other Taxes Paid, select Foreign Taxes
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