2555s Interest Earned

[gnabboud]

I work overseas and currently filing form 2555.  My wife lives with me and doesn't work.  She recently inherited money, from her dad (overseas) who is not a US citizen (less than  $100K).  

1) Is the inherited money taxable? 

2) She now earns interest on the inherited money.  We file jointly.  Can I file a separate 2555-S form to her to deduct the earned interest?  

Thanks 

[Critter]

1) Is the inherited money taxable?  Cash inheritances from anywhere in any amount is not taxable.

2) She now earns interest on the inherited money.  We file jointly.  Can I file a separate 2555-S form to her to deduct the earned interest?   The form 2555 is for Earned income only ... you cannot exclude interest income.