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How would you report foreign wages earned without the exclusion

Forum|Forum|4 years ago
August 22, 2021
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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?

Reference:

https://ttlc.intuit.com/community/taxes/discussion/re-foreign-income-and-child-tax-credit/01/2345018#M838079

TurboTax Home & Biz Windows

Best answer by SundayInSalem

Foreign income AND the foreign earned income exclusion (FEIE) are both in the same section of TurboTax. It’s confusing.

To report foreign income but not claim FEIE, do what @Critter-3 advises in the last entry of the link you mentioned:

Enter your foreign income.
Keep going until TurboTax asks whether you qualify for the FEIC.
Say NO (even if you qualify for FEIE) if you DO NOT want to claim FEIE).

You can find the foreign income section under Personal > Personal Income > Less Common Income > Foreign Earned Income and Exclusion or type foreign income in Search then select Jump to foreign income.

TurboTax will remove Form 2555 but keep your foreign income.

S

SundayInSalemAnswer

Foreign income AND the foreign earned income exclusion (FEIE) are both in the same section of TurboTax. It’s confusing.

To report foreign income but not claim FEIE, do what @Critter-3 advises in the last entry of the link you mentioned:

Enter your foreign income.
Keep going until TurboTax asks whether you qualify for the FEIC.
Say NO (even if you qualify for FEIE) if you DO NOT want to claim FEIE).

You can find the foreign income section under Personal > Personal Income > Less Common Income > Foreign Earned Income and Exclusion or type foreign income in Search then select Jump to foreign income.

TurboTax will remove Form 2555 but keep your foreign income.

S

syedHarisaliAuthor

Thank you so much for clearification.

S

syedHarisaliAuthor

HI,

This helped, thanks. I have one question though.

We are able to successfully follow the step wizard, while we were unable to claim Earn Income Credit.
As per turbo tax EIC can't be claim if you have Foreign Earn income, ( we have only income via foreign salary), while turbo tax allowing child credit.

Is that correct or I we are doing something wrong ??? (no EIC)

Background:

1. US citizen leave abroad for full year.

2. Marriage filling jointly

3. Only income is foreign Earned income (salary) $15000 approx. (under 24k limit)

4. Two kids.

EITC Qualification Assistant. tool on IRS website, showing eligible of EIC.
Some article showing not eligible if not live in USA more then half year.