Скачать или смотреть What's the difference between FTC and FEIE?

Foreign Earned Income Exclusion (FEIE) will exclude a certain amount of your foreign-earned income from US taxes. This option may work best when you're living and working in a country with low or no foreign taxes. However, you cannot exclude some types of income, such as passive income.

Foreign Tax Credits (FTC) allows you to claim a dollar-for-dollar credit for foreign taxes paid, which will reduce your US tax liability. This can be beneficial if you're in a country with high taxes and you want to carry them over for future years.

It is important to note, there are credits that may only be available to you if you do not use the FEIE, such as the Child Tax Credit. Often, taxpayers with dependents will choose the FTC as opposed to the FEIE for this reason.

Your choice as to whether to use the FEIE or FTC is also going to depend on what other types of income you have besides wage income and where you're paying those taxes.

You cannot use both the FTC and the FEIE on the same income, but you can use them both on your tax return. For example, you might use the FEIE on your wages and the FTC on your passive income.

Need help with your US taxes? Request an introduction to a US tax specialist at expertsforexpats.com

Nothing said in this video constitutes tax advice and you should always speak to a qualified advisor if you are unsure about any aspect of your tax return.

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