Dear All -

Can a taxpayer, who is a Lawful Permanent Resident of US, file Form 2555 - Foreign Income Exclusion for the income earned by him in another country (outside US) and claim Foreign Tax Credit for the same income? What are the reporting requirements to file Form 2555?

Which one of the following options is appropriate for the above scenario?

a. Reporting the Foreign earned income by way of Substitute W-2 and claiming the FTC on the same (OR)

b. File Form 2555 and claim FTC on the balance amount which has not been covered through Form 2555.

Please clarify. Thanks.

For the earned income that you have excluded on Form 2555, you can not claim foreign tax credit on Form 1116. Yes, you can claim FTC on the balance amount not covered by Form 2555.

To be eligible to file Form 2555, you must meet either Physical Presence Test or Bonafide Residence Test.
Read: Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income

Thanks a lot for your clarification.