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If I choose to apply foreign tax credits instead of foreign earned income exclusion (even if I can) this year, can I apply foreign earned income exclusion next year?

I've always applied foregin earned income exclusion for previous years.  Will I be barred to apply foreign earned income exclusion next year if I stop applying it this year?
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Accepted Solutions
KarenJ2
Expert Alumni

If I choose to apply foreign tax credits instead of foreign earned income exclusion (even if I can) this year, can I apply foreign earned income exclusion next year?

Yes, you will not be able to use the foreign earned income exclusion for 5 years if you have been using it every year and choose not to use it one year.

 

 

Revoking Your Choice to Exclude Foreign Earned Income

 

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1 Reply
KarenJ2
Expert Alumni

If I choose to apply foreign tax credits instead of foreign earned income exclusion (even if I can) this year, can I apply foreign earned income exclusion next year?

Yes, you will not be able to use the foreign earned income exclusion for 5 years if you have been using it every year and choose not to use it one year.

 

 

Revoking Your Choice to Exclude Foreign Earned Income

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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