On Apr 13, 11:04*am, leewa10_at_hotmail_dot_...[at]foo.com (leebop)
wrote:

- quote -



You cannot pick and choose which foreign source earned income to
exclude. Either exclude all you are eligible for or exclude none.

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On Apr 13, 8:04 am, leewa10_at_hotmail_dot_...[at]foo.com (leebop) wrote:

- quote -

Even if your AGI is 0 because of the foreign earned income exclusion,
you can still contribute to a Roth. Focus on line 8 in the worksheet.

Go to http://www.irs.gov/publications/p590...ublink10006507

Here are the key points.

1. Enter your adjusted gross income from Form 1040, line 38; Form
1040A, line 22; or Form 1040NR, line 36
This may be 0 for you.

3. Subtract line 2 from line 1.
This may be 0 for you.

8. Enter any foreign earned income exclusion and/or housing
exclusion from Form 2555, line 45, or Form 2555-EZ, line 18
This may be 12,000 for you.

12. Add the amounts on lines 3 through 11
Also 12,0000.

The above is your modified AGI for Roth purposes. So it looks like
you can contribute the lesser of 5k or 12k. (Though if 50 or older
you can contribute 6k, and if your company is in bankruptcy, then even
more.)

13. Enter:

*

$169,000 if married filing jointly or qualifying widow(er),
*

$10,000 if married filing separately and you lived with your
spouse at any time during the year, or
*

$116,000 for all others

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<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

Hello. I'm filling out my 1040 tax forms for 2008 and I have foreign
income from self-employment overseas (Form 1099- misc. from a US
university) for the first part of the year and regular overseas wages from
a foreign university for the second part of the year. I understand that
both types of income are eligible for the foreign earned income exclusion
based on the physical presence test; however, is it ok/possible to NOT
include the Form 1099-misc. Schedule C income on Form 2555 but to use Form
2555 only for the regular overseas wages? My thought is that if I don't
include the self-employment income on form 2555, I'll have "taxable
compensation" on line 12 and can therefore put money into a Roth IRA. The
Form 1099-misc. income is only $12,000 gross so after deductions I don't
think I'd owe taxes on it (other than SE tax). Or, since it was earned
overseas, am I required to include it on Form 2555 with the rest of my
overseas income?
Thanks for any help!

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<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >