View Full Version : Foreign Tax Exclusion
retwxman
Mar 15, 2011, 10:11 AM
I am filing a Foreign Tax Exclusion (Form 2555). Do I figure my tax on the amount on line 43 or do I have to figure it using the worksheet for line 44?
AtlantaTaxExpert
Mar 26, 2011, 07:41 AM
Neither; these lines are used for the Housing Exclusion calculation.
The amout excluded is calculated in Part VII. The actual tax is calculated on Form 1040.
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retwxman
Mar 26, 2011, 01:13 PM
I either have to figure my tax on the amount on line 43 as everyone else does, or use worksheet 44 to do it. I do not have a Foreign Housing Exclusion just Foreign Income as I am a US Citizen and live and work on a US Military Installation so housing is provided.
AtlantaTaxExpert
Mar 27, 2011, 01:17 PM
You missed my point.
You do NOT calculate the tax on Form 2555; you calculate the EXCLUSION in Part VII, Lines #37 - #42. The amount excluded is then transferred to Line #21 of Form 1040 as a NEGATIVE number.