# Foreign earned income and interest exemption



## berniej (Mar 5, 2012)

Can you take the foreign Income exclusion and the foreign interest exemption at the same time or is it just one or the other as my intrest here is taxed.

Thanks 

Bernie McKenna


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## Bevdeforges (Nov 16, 2007)

What foreign interest exemption? You declare your foreign interest and if your personal exemption and standard deduction leave you with taxes still due, you use the foreign income tax credit for taxes paid in the country in which you are resident.
Cheers,
Bev


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## berniej (Mar 5, 2012)

Sorry I couldn't think of the right name for it.

Thanks 

Bernie


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## berniej (Mar 5, 2012)

Had a doctors appointment thats why I dion't explain myself.
I've only filed a 1040A to report my military retirement pay,my only source of US income,for the last 20 years.For 2011 I took all my stuff,US and Dutch to the army baser here in Holland and the Lawyer(part of theVITA? program)just did a 104oA again.
I know I have to do a 1040,2555ez and schedule B.I figured that out last year but as the base did an e-file for me I just left it.My dutch is such that when I fill this all out I wind up owing about600-1000 for each year.Am I allow then to use the foreign income taks credit to eliminate the tax as I've paid tax on it to the dutch.I was not sure,being I have US income that I was allowed to use the foreign income taks credit the same time I used the foreign earned income exclusion.
The base tried to help me but the only person who was knowledgeabde about taxes went back to the states in june so there is no one there anymore.
any help you can give would be great.

Thanks in advance

Bernie McKenna


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## Bevdeforges (Nov 16, 2007)

It's not a choice between the FEIE and the foreign tax credit. Normally, what you do is exclude what you can with the FEIE, and then use your tax credits to reduce or eliminate the tax on anything left (interest, earned income over the limit, other income, etc.)
Cheers,
Bev


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## berniej (Mar 5, 2012)

okay 
Thanks

Bernie


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