Hong Kong

[Bjorn]

A US citizen lives in Hong Kong and makes about 120,000 in US dollars.
The return excluded a bit over 90,000 but also took a foreign tax credit. I thought it was one or the other.

Can I get a quick down and dirty on the foreign exclusion and the tax credit from somebody who does them fairly often?

Mahalo.

Bjorn

[David1980]

They could take a foreign tax credit for the 30,000 not being excluded on 2555. It does affect how you complete the income and deductions in Part I. And you'd expect something on line 12 for the taxes on the excluded income.

The information would be in 1116 instructions and Publication 514.