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Subject Author Date
Foreign Income Exclusion vs. Foreign Tax Credit Larry Israel 03-25-2007
Posted by Larry Israel on March 25, 2007, 12:07 pm
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 Are there conditions where it would be advantageous to take
the foreign tax credit via Form 1116, rather than the
foreign earned income exclusion on Form 2555? I would rather
not go through the torture of checking this by filling out
Form 1116.

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Posted by L K Williams on March 26, 2007, 10:57 am
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 SLARRY@weizmann.weizmann.ac.il (Larry Israel) wrote:

> Are there conditions where it would be advantageous to take
> the foreign tax credit via Form 1116, rather than the
> foreign earned income exclusion on Form 2555? I would rather
> not go through the torture of checking this by filling out
> Form 1116.

I have heard that there can be situations in which this
would be advantageous. However, in all my years of working
with expats, I have never seen such a case. Nor can I think
of a scenario where you would forego the exclusion. That
doesn't mean that it can't happen, just that I don't know
what it would take.

Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by parrisbraeside@yahoo.ca on March 27, 2007, 1:02 am
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VSLA...@weizmann.weizmann.ac.il (Larry Israel) wrote:

> Are there conditions where it would be advantageous to take
> the foreign tax credit via Form 1116, rather than the
> foreign earned income exclusion on Form 2555? I would rather
> not go through the torture of checking this by filling out
> Form 1116.

Yes, Do you reside in the Continental North America and Do
you have young children? In that case, CTC applies. Most
others find 2555 good enough.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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