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Old 04-12-2007, 10:13 PM
Phil Marti
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Default Re: Foreign earned income exclusion

"L K Williams" <lanny[at]loxinfo.co.th> wrote:

- quote -

> A client wishes to make a contribution to a Roth IRA but all
> of her earned income amounts to less than the available
> exclusion. I have looked everywhere I can think to find the
> IRS position on taking less than the full exclusion in order
> to have taxable earned income.
> In other words, she wants to take $4,000 less than her
> actual salary as a foreign earned income exclusion.


I have researched this in the past. I can't give you a cite
other than "there's no way to do it on the form," but she
can't do it. It's all or nothing.

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
  #-1  
Old 04-12-2007, 03:47 AM
L K Williams
Guest
 
Posts: n/a
Default Foreign earned income exclusion

A client wishes to make a contribution to a Roth IRA but all
of her earned income amounts to less than the available
exclusion. I have looked everywhere I can think to find the
IRS position on taking less than the full exclusion in order
to have taxable earned income.

In other words, she wants to take $4,000 less than her
actual salary as a foreign earned income exclusion. Thus,
she could make a $4,000 contribution to her Roth.

In all my years of working with expats, this has never come
up before. I know that the exclusion is optional but is the
amount of qualifying income also optional?

Anyone have any comments?

Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >
 

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earned, exclusion, foreign, income
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