Foreign earned income exclusion

[mat.higz]

Registered users do not see advertisement

In addition to wages, salaries, bonuses and commisions, I wonder whether the foreign dividend earned during the year can be qualified as foreign earned income under form 2555.

Secondly, if the qualified foreign earned income eventually less than the maximum exclusion of $91,400 in 2009, say, $80,000, I just wonder whether the spare exclusion of $11,400 can be applied to income earned in the US, is there any criteria to be subject to?

many thanks.

[Skyhawk]

Dividends are NOT "earned income" as defined by the tax code. Dividends are referred to as "portfolio income" and "investment income". In answer to your question, NO dividends cannot be included in the foreign income exclusion amount. See section 911 of the tax code.

[mat.higz]

Originally Posted by Skyhawk

Dividends are NOT "earned income" as defined by the tax code. Dividends are referred to as "portfolio income" and "investment income". In answer to your question, NO dividends cannot be included in the foreign income exclusion amount. See section 911 of the tax code.

Thanks, I got it.