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    khaled_k's Avatar
    khaled_k Posts: 2, Reputation: 1
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    #1

    Jan 23, 2009, 08:33 PM
    Foreign Income
    I am a us citizen and my husband is a resisdent with a social security number. My question is when I fill out my taxes do I need to add his income into wages manually as it is coming up a negative number since we are using the foreign exclusion. He lived all year in a foreign country so he has physical presence there. I don't have a w2 for him as they don't do that there. I do have a statement from his company of what his wages were. I just don't think it looks right when his income makes our combined income less that what I made so I don't think it is right.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Jan 23, 2009, 11:07 PM

    By claiming earned income exemption, your income can not become negative. Maximum credit is maximum foreign income added in total income. Read: Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income
    khaled_k's Avatar
    khaled_k Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Jan 23, 2009, 11:20 PM
    Yes I understand that but in my tax program it is deduting his income from mine so I'm wondering why?
    IntlTax's Avatar
    IntlTax Posts: 831, Reputation: 23
    Tax Expert
    		  
    #4

    Jan 24, 2009, 05:37 AM

    A positive number should show up on line 7 and a negative number should show up on line 21 (from Form 2555).

    For the official IRS discussion of the exclusion see Foreign Earned Income Exclusion
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