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danielmsh3
Level 2

If I have foreign unearned income of $200,000, do I still need to pay taxes? (e.g. rent, stock, dividends..)

If I have foreign unearned income of $200,000 and I meet either Bona Fide Residency test or Physical Presence Test, do I still need to pay taxes about $200,000? 

I know there is a foreign earned income exclusion which is $107,600. Since it is 'earned income exclusion' it won't apply to me? Or I just need to pay taxes about $92,400 after exclusion?

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Accepted Solutions
DanaB27
Expert Alumni

If I have foreign unearned income of $200,000, do I still need to pay taxes? (e.g. rent, stock, dividends..)

Yes, you will have to include the foreign unearned income in your taxable income since the Foreign Earned Income Exclusion does not apply to foreign unearned income. But you might be able to claim foreign taxes paid. Please see Where do I enter the foreign tax credit (Form 1116) or deduction for 2020? for more details.

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DanaB27
Expert Alumni

If I have foreign unearned income of $200,000, do I still need to pay taxes? (e.g. rent, stock, dividends..)

Yes, you will have to include the foreign unearned income in your taxable income since the Foreign Earned Income Exclusion does not apply to foreign unearned income. But you might be able to claim foreign taxes paid. Please see Where do I enter the foreign tax credit (Form 1116) or deduction for 2020? for more details.

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

View solution in original post

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