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    Foreign income exclusion

    tp earned $45K for last 4 months of 2007 (was in foreign country until 10/2008)
    FORM 2555 limits the exclusion to 33% of exclusion amount ($81,500) (122 days/ 365)
    No matter how I try, taxpayer still OWES big taxes (no withholdings on foreign income W2) and HE thinks ALL foreign earning are excluded from income - OUCH! Does this example seem OK?
    Last edited by luke; 06-29-2010, 02:11 PM.

    #2
    Housing allowance

    Have you tried increasing the exclusion with the housing allowance?

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