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Munck77
New Member

Foreign income increases my federal tax due

We are trying to file our taxes and due to our 4 months of foreign income, it appears that we owe almost $3000 in federal taxes. I don't understand why since the foreign income amount is exempt from taxes.

We worked 4 month abroad and the rest of the year in the US.

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1 Reply
SusanY1
Expert Alumni

Foreign income increases my federal tax due

Foreign earned income is not exempt from federal taxes.  However, credits may be taken for taxes paid to the other country, if applicable.  

 

If you paid taxes to the country where the income was earned, you can take a credit for these in the section for foreign tax credits under Deductions & Credits then Estimates and Other Taxes Paid and finally Foreign Taxes. 


 

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