# Is there a limit on foreign earned income that can be offset by the FTC?



## Alltimegreat1 (Feb 25, 2015)

I've always been below the FEIE threshold. I'm wondering if my income exceeds that amount some day, will I be able to avoid all US tax liability even if I have an extremely high income in Germany (where the taxes are higher)? For example, would someone earning $500,000 in Germany have a zero US tax liability using the FTC?


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## BBCWatcher (Dec 28, 2012)

If their German income tax rate is equal or higher -- and it probably is -- yes. That person could be earning (and/or receiving) $50 million in income. The level doesn't particularly matter. Foreign (income) tax is foreign tax.

Moreover, to the extent the rate is higher, excess FTCs can be banked, to use as credits up to 10 years in the future against possible U.S. income tax on the same category of income.


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