What is the Foreign Earned Income Exclusion for 2018?

Under Section 911 of the US tax code, the Foreign Earned Income Exclusion for 2018 increases from $102,100 in 2017 to $104,100 in 2018. The FEIE amount for 2016 was $101,300, 2015 was $100,800, and 2014 was $99,200.

Can I claim both FEIE and foreign tax credit?

Can I Take Both the Foreign Earned Income Exclusion and the Foreign Tax Credit? While you cannot take the Foreign Earned Income Exclusion and Foreign Tax Credit on the same dollar of income, you can take both in the same year.

Can I claim both Foreign Earned Income Exclusion and foreign tax credit?

The first is claiming the Foreign Earned Income Exclusion on Form 2555 and the second is claiming the Foreign Tax Credit on Form 1116. The Foreign Earned Income Exclusion is only applicable to earned income, whereas the Foreign Tax Credit can be applied to both earned and unearned income.

How do I qualify for foreign earned income exclusion?

To benefit from the Foreign Earned Income Exclusion, the taxpayer must meet one of the following criteria: Works full time in a foreign country for an entire calendar year—known as the Bona Fide Residence Test. Works outside of the United States for at least 330 of any 365 day period—known as the Physical Presence Test.

Is there a foreign earned income exclusion for 2018?

On October 19, 2017, the IRS announced the Foreign Earned Income Exclusion for 2018. The FEIE for 2018 is a nice bump up from 2017. Here’s what you need to know about the Foreign Earned Income Exclusion for 2018 and how it might be affected by President Trump’s residency based tax proposal

What kind of taxes are eligible for the foreign tax credit?

Generally, only income, war profits and excess profits taxes qualify for the credit. See Foreign Taxes that Qualify For The Foreign Tax Credit for more information. Taken as a deduction, foreign income taxes reduce your U.S. taxable income.

Is there a limit to the foreign housing deduction?

Your foreign housing deduction cannot be more than your foreign earned income less the total of your (1) foreign earned income exclusion, plus (2) your housing exclusion. Although the foreign housing exclusion and/or the deduction will reduce your regular income tax, they will not reduce your self-employment tax.

Where to report foreign earned income for 2018?

The Foreign Earned Income Exclusion for 2018 is to be reported on your 2018 personal income tax return using Form 1040 and Form 2555. Only income earned outside of the US qualifies for the FEIE.