# Foreign earned income exclusion?



## berniej (Mar 5, 2012)

doing taxes for the first time.Work and live in the Netherlands no income from the US that I know of.I'm using the 1040/2555EZ/schedule B and 1116(if I can figure 
that one out).
On the 2555 line 18 listed my exclusion,then on line 7 the 1040 listed it again.Added the interest from my savings account,and listed the income on line 21,subtracted and I'm left with only the interest that I received.
The problem comes that the interest $551 when subtracted from my standard deduction leave 4599(this is a 2006 form as I have to do them all).
On line 42 I have 3300 for the single deduction.so do I just put 0 in line 43,57,72.Do I have to put anything in line 63.I have foreign tax for the 1116 but doesn't appear that I need to use it it will only confuse me more than I am now.Do I have to use the worksheet line44 that makes thing worse.
Or do I not subtract the interest I received from my deductions.
Its pretty bad as I have no one to discuss this with so I'm glad I found this site.
Any help would be apppreciated.
Hope this makes sense

Bernie


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## Bevdeforges (Nov 16, 2007)

Download a copy of Publication 54, which explains much of the "mystery" of filing from overseas.

You don't subtract your interest received from your standard deduction - it's the other way around. Subtract the standard deduction from your AGI (which in your case appears to be your interest income). You should get a whopping big negative number. Following down the rest of the form, it says in a couple places "if the result is negative, enter -0-."

The point of the exercise is basically to get your "taxable income" figure to 0 and then you're home free.
Cheers,
Bev


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