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Level 2
posted Jun 6, 2019 9:19:21 AM

I want to exclude only a part, but not all, of my foreign income. Is this permitted?

My foreign income is under the limit for the the foreign earned income exclusion.  But I want exclude only a part of the income — say 50% of my foreign income.  The other 50% would not be excluded.  Can I do this?  Or, if I use the FEIE, must I always exclude as much of my foreign income as possible?  If I can do this, how do I do it in Turbo Tax?

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1 Replies
Employee Tax Expert
Jun 6, 2019 9:19:23 AM

You can only exclude all, part, or none of your Foreign Earned Income. However, you do not choose how much you want to exclude. 

The software will take in to account your time spent overseas and the amount of earned income you made outside of the United States.

Here is an article that will help explain that: