Question

Can I Take a Partial Foreign Income Exclusion to Offset Excess Roth IRA Contributions?

Forum|Forum|6 years ago
April 7, 2020
1 reply
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I am currently preparing my return, I am a PhD student currently living in Canada. My income is quite low and I qualify for the Foreign Earned Income Exclusion on the entirety of my earned income. I have no US income. However, I made contributions to my Roth IRA, but TurboTax is telling me that these contributions were in excess, because my total Earned Income is zero dollars since it is all excluded. Can I claim part of my foreign earned income so that my Roth IRA contributions will not be considered to be excess? I do not see any option to do so in TurboTax, though the IRS website refers to the FEIE as being a "maximum exclusion", implying I do not have to take the full amount.

TurboTax Free Edition Online

K

KarenJ2

You can allocate some of your wage income to the US. You cannot exclude any income that is US sourced. Only foreign workdays can be sourced as foreign income.

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