Foreign income and child tax credit

[syedHarisali]

Last year we file tax for 2019 using turbo tax. (for different person)

A US citizen, how is living and working abroad since last 2 year, marriage filling jointly, having 2 kids less then 6 year old. No USA income.

2019 mentioned foreign income in turbo tax,  but turbo tax marked it as excluded has total income counted as zero '0'.   Result in no child credit and other low income credit etc..

1)  Going to file tax for 2020:  Do he quality for child and other credit ?  what option to choose in turbo tax ? to avoid repeating issue this year.   (USA-Pakistan has territory signed. hence income should count I think)

2) How do file correction for 2019 using turbo tax..

Please guide  and advise.

using version of turbo with come with 5 accounts (e-file)

[Critter-3 · Accepted solution]

Read up on the rules on revoking the foreign income exclusion since you cannot just switch back and forth at will ... see page 21 ...  https://www.irs.gov/pub/irs-pdf/p54.pdf

[syedHarisali]

So what to do  now ? some detail please

[Critter-3]

Sorry but I cannot tell you what to do ... you need to consider your situation carefully and decide if you want to revoke the foreign income exclusion for the next 5 years or not.  Each choice has pros and cons.  Seek l professional assistance if you need assistance, this nameless faceless public forum is not the best choice for legal advice. 

[syedHarisali]

Thanks for info. 

[syedHarisali]

 If you choose not to claim foreign income exclusions, how would you report foreign wages earned without the exclusion, and also be able to claim the EIC and Child Tax Credit?

[Critter-3]

You can't have your cake and eat it too ... if you exclude the income you lose the credits. 

[syedHarisali]

Exclusion was taken by mistake, filling correction to revert it back.  Now the question is :

If you choose not to claim foreign income exclusions, how would you report foreign wages earned without the exclusion, and also be able to claim the EIC and Child Tax Credit?  

Could you please guide, so we can file right this time.

[Critter-3 · Accepted solution]

Follow the foreign income section and do NOT choose to exclude the income.  Read all the screens slowly and carefully.  If you need more program assistance contact TT support directly :       

Please use the following link to contact Customer Support for further assistance.

https://ttlc.intuit.com/community/using-turbotax/help/what-is-the-turbotax-phone-number/00/25632

[syedHarisali]

Thanks!!