- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
I made excess IRA contribution due to zero earned income. Can I apply foreign earned income exclusion in part and foreign tax credits in part to my foreign earned wages?
Accepted Solutions
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
I made excess IRA contribution due to zero earned income. Can I apply foreign earned income exclusion in part and foreign tax credits in part to my foreign earned wages?
Yes, you can apply the foreign exclusion to only part of your wages. To have earned income to qualify to put money into an IRA, you must add back the excluded amounts in determining your compensation for purposes of the IRA limits. Likewise, for purposes of determining the IRA limits, do not reduce your compensation by any foreign housing deductions.
Individual Retirement Accounts
**Mark the post that answers your question by clicking on "Mark as Best Answer"
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
I made excess IRA contribution due to zero earned income. Can I apply foreign earned income exclusion in part and foreign tax credits in part to my foreign earned wages?
Yes, you can apply the foreign exclusion to only part of your wages. To have earned income to qualify to put money into an IRA, you must add back the excluded amounts in determining your compensation for purposes of the IRA limits. Likewise, for purposes of determining the IRA limits, do not reduce your compensation by any foreign housing deductions.
Individual Retirement Accounts
**Mark the post that answers your question by clicking on "Mark as Best Answer"
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
I made excess IRA contribution due to zero earned income. Can I apply foreign earned income exclusion in part and foreign tax credits in part to my foreign earned wages?
Thanks.
One more question. If I apply foreign earned income exclusion just partly (even if I could apply it to full amount of my earned income), will I be barred from applying foreign earned income exclusion next year?
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
I made excess IRA contribution due to zero earned income. Can I apply foreign earned income exclusion in part and foreign tax credits in part to my foreign earned wages?
You should be fine. There is no rule that you must exclude all of your foreign income.
**Mark the post that answers your question by clicking on "Mark as Best Answer"
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
I made excess IRA contribution due to zero earned income. Can I apply foreign earned income exclusion in part and foreign tax credits in part to my foreign earned wages?
I do you actually do this in TT?
Still have questions?
Or browse the Forums