Hi, I am using Turbotax and I am filling out the forms.
At the current stage without entering my foreign earned income, I own 20,000 in taxes according to TT.
But then I entered my foreign earned income in the amount of 40,000 and then entered how the stuff to qualify for the foreign earned income exclusion. After I did that, TT said "congrats, your 40,000 is exempt from taxes", but now I owe 32,000 in taxes according to the TT sidebar.
My question is that if the entirety of my foreign earned income is excluded from taxation, how come I owe 32,000 in taxes and not 20,000?
These numbers are not real of course, but I am well below the maximum income to be excluded from the foreign income exclusion. I do have a lot income related to stocks. Maybe the 12,000 increase in taxes is due to being in a higher income tax bracket because of my foreign earned income?
At the current stage without entering my foreign earned income, I own 20,000 in taxes according to TT.
But then I entered my foreign earned income in the amount of 40,000 and then entered how the stuff to qualify for the foreign earned income exclusion. After I did that, TT said "congrats, your 40,000 is exempt from taxes", but now I owe 32,000 in taxes according to the TT sidebar.
My question is that if the entirety of my foreign earned income is excluded from taxation, how come I owe 32,000 in taxes and not 20,000?
These numbers are not real of course, but I am well below the maximum income to be excluded from the foreign income exclusion. I do have a lot income related to stocks. Maybe the 12,000 increase in taxes is due to being in a higher income tax bracket because of my foreign earned income?
Statistics: Posted by cheesepep — Tue Mar 12, 2024 7:11 am — Replies 0 — Views 28