US Foreign Income Exclusion

Forum|Forum|1 year ago
December 11, 2024
1 reply
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Hello,

US citizen living in Canada with all foreign earned income and planning to use the FEIE for the first time. Question: if I have multiple sources of foreign earned income, can I report part of my income (from one employer) under the FEIE and another source as taxable income? Thank you!

Hayley

pk12_2

Employee

@alloway0316 , assuming that you meet the eligibility of a full 12 month test period of having a Foreign Tax Home which encompasses the tax year under consideration, you should be eligible to use FEIE for all foreign earned / self-employed income ( multiple foreign sourced income may be added together -- use a back-up sheet to enter each income stream and the total to the form 2555 ).

When did you start foreign tax home ( first full day after entering the foreign country ) ? Are these in come all wages or what ?

Is there more I can do for you ?

alloway0316Author

Thank you for the answer! Yes, I do meet the eligibility. I have 2 sources of employment income and one source of self-employment income. The total amount of all sources is under the limit for the FEIE. My question is if I can exclude some, but not all of the income, given that I have dependents that would qualify for child tax credits? Or is the FEIE an all or nothing concept?

pk12_2

Employee

@alloway0316 as far as I know you can use only one path for foreign earned in come -- FEIE or FTC/ FT Deduction. However, if you choose FEIE and you have unexcluded income then yes you are eligible to use FTC or FT Deduction for the that .

I thought ( and I am unsure here ) congress/ IRS had changed rulings such that you could get child tax credit even if you have FEIE. But I need to loom up this topic.