# Form 2555 - Show ALL foreign earned income?



## jheuer (Apr 20, 2016)

Hello

I have done a lot of searching and can't seem to find a clear answer to my question. Wondering if someone out there can help.

The total amount on line 7 of my 1040 is all foreign earned income. Do I need to show this whole amount of my FEI on form 2555 line 19, or can I show a lesser amount that will still be enough (together with my standard deductions and exemptions) to give me a 0 tax due?

I find that if I can do this, I can have a larger amount of foreign tax credit (on the none excluded amount of FEI) which I can then carryover to the future in case I will need it.

Thanks


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## Bevdeforges (Nov 16, 2007)

Nope - it's all or nothing. You can't exclude only a portion of your salary with the FEIE in order to have something left over - say, for making an IRA contribution or applying foreign tax credits.

You can use your Foreign Tax Credits on salary that exceeds the FEIE (but you have to allocate the foreign taxes between earned and unearned, and apportion for the excluded portion vs. the total).
Cheers,
Bev


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## jheuer (Apr 20, 2016)

Thank you, Bev.

John


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## BBCWatcher (Dec 28, 2012)

However, going forward, if you're particularly clever, you can get some U.S. earned income by simply working in the U.S. for particular intervals. Some people can do that. They can visit the U.S. for a couple weeks (or whatever), do some work while physically there, then return to their foreign country of residence. That U.S. income can help you qualify for the Additional Child Tax Credit, qualify to make an IRA contribution, and/or maintain U.S. Social Security Disability and Survivors Insurance coverages (and add more U.S. years to an earnings history to qualify for Medicare).

That's getting quite fancy and artful, but it is possible, legally.


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