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ds111gr
New Member

I live overseas in South Korea. I pay Korean income tax on my wages. I made, roughly, $25,000 in 2016. Can I exclude this income?

 
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DDollar
Expert Alumni

I live overseas in South Korea. I pay Korean income tax on my wages. I made, roughly, $25,000 in 2016. Can I exclude this income?

Yes, if you qualify for the exclusion.  If you are a U.S. citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income. However, you may qualify to exclude up to $101,300 from income.  In addition, you can exclude or deduct certain foreign housing amounts.  For additional information see Foreign Earned Income Exclusion and Publication 54 - Tax Guide for US Citizens Abroad

If you qualify, you can use Form 2555 to figure your foreign earned income exclusion and your housing exclusion or deduction. You cannot exclude or deduct more than your foreign earned income for the year.

In TurboTax Online (while in your return) click on "Search" and type "Foreign Earned Income" in the Search window and hit enter.

  • Click on "Jump to Foreign Earned Income"
  • Answer "Yes" to "Did you make any money outside the U.S.?"
  • Continue through the interview to complete Form 2555 to report your foreign earned income and take the exclusion

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