The scenario continues. Roger may be eligible for the EIC.
Part of Roger's income was $855 that he earned while in Canada for
two weeks. He's heard about Form 2555, which is used to exclude foreign
income from gross income and thereby decrease the amount of income
tax.
Roger: Should I file Form 2555 to exclude my foreign income from my gross income so I can pay less income tax?
How would you respond?
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That's a good idea. I can help you complete the form and then we can recalculate the taxable income on your tax return. |
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Not if you want to receive the earned income tax credit. You cannot receive the EIC if you exclude from gross income any income you earned in a foreign country. |