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mikhasan
New Member

Foreign tax credit or foreign earned income exclusion?

If an American lives and works in Japan as a permanent resident and earns 60,000USD/year from a single source, are they better off claiming the foreign tax credit or the foreign earned income exclusion and why? (Assuming they do not have any other income or dependents.)

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3 Replies

Foreign tax credit or foreign earned income exclusion?

foreign earned income exclusion

mikhasan
New Member

Foreign tax credit or foreign earned income exclusion?

@Critter-3 

Thanks. Can you provide insight into the logic?

Foreign tax credit or foreign earned income exclusion?

Seriously ???  

 

foreign tax credit  ... may pay some taxes

 

foreign earned income exclusion  ... will pay NO taxes

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