Reduction in Foreign Taxes

[wendyle1993]

I can exclude $130,000 from my foreign earned income. In the " Reduction in Foreign Taxes" session, what should I fill in for the following questions?

2025 Foreign Earned Income Excluded Less Related Deductions

Total Foreign Earned Income Less Related Deductions

[MaryK4]

2025 Foreign Earned Income Excluded Less Related Deductions is your excluded income (up to the $130,000 limit for 2025) minus any expenses directly related to that excluded portion.
Example: If you excluded $130,000 and had $5,000 in related business expenses (like from Schedule C), you would enter $125,000. If you have no related deductions (typical for W-2 employees), enter the full $130,000.

2025 Foreign Earned Income Excluded Less Related Deductions  is the total amount of foreign earned income you received before applying the exclusion, minus all related deductions.

Example: If your total foreign salary was $150,000 and you had no related deductions, you would enter $150,000.