turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Event: Ask the Experts about your refund > RSVP NOW!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

if income is earned abroad is it obligatory to use FEIE?

If income is earned abroad is it obligatory to use FEIE?

My income is far from the maximum allowed and by using FEIE my EIC (or CTC) is eliminated. Can I claim Foreign earned income in another way as I don't need it to reduce taxable income it seems. I pass the Bona Fida residence test. 

My main concern is that I have 4 (children) dependents and so I would like to be able to claim or earn a refund from this. The income that I earned is below 40, 000 USD. 

So, can I list my foreign earned income in another way? There is no W-2 nor a form 1099 available from the foreign employer.

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

4 Replies

if income is earned abroad is it obligatory to use FEIE?

You have the option to take the exclusion OR the credit ... Choose the credit.

if income is earned abroad is it obligatory to use FEIE?

How/where do I report the earnings as there was no company supply w-2. If I select the option not to use FEIE TurboTax takes the info/amount off the misc. W-2. So what’s best way to report this income as foreign earned?
Also, I cannot use foreign tax credit because the country I’m working in doesn’t charge/assess taxes.

if income is earned abroad is it obligatory to use FEIE?

I'm not aware of any obligation to use either the FEIE or the Foreign Tax Credit. Given your situation with 4 kids, using the FEIE automatically disqualifies you from claiming the refundable Additional CTC. You are most likely better off not excluding any foreign income. If you don't exclude your income as foreign income, your tax liability will most likely be eliminated with the CTC and you would receive a check for your eligible ACTC. There is not a requirement to live in the U.S. to claim these credits.

KarenJ2
Expert Alumni

if income is earned abroad is it obligatory to use FEIE?

If you claim Foreign Tax Credit instead of the Foreign Earned  Income Exclusion, then the Child Tax Credit may still lead to a refund. 

 

However, if you DO NOT take the foreign earned income exclusion this year (with or without the foreign tax credit) you in effect are revoking the foreign earned income exclusion and you must wait 6 year to be able to use it again.

 

According to the IRS: Once you choose to exclude your foreign earned income and/or your foreign housing costs, that choice remains in effect for that year and all later years unless you Revoke it.  See Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad for instructions on how to revoke the election and the associated effects.

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

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies