Welcome back! Ask questions, get answers, and join our large community of tax professionals.
- Topics
- Training
- Community
- Product Help
- Industry Discussions
- User Groups
- Discover
- Resources
Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
- Intuit Accountants Community
- :
- ProConnect Tax
- :
- ProConnect Tax Discussions
- :
- Re: Foreign Earned Income Exclusion
Foreign Earned Income Exclusion
Options
- Mark Topic as New
- Mark Topic as Read
- Float this Topic for Current User
- Bookmark
- Subscribe
- Printer Friendly Page
shackacctsvcs
Level 1
02-25-2023
08:06 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I have a client who has foreign earned income, which a portion is being excluded. After the exclusion, their taxable income remaining is $30,553. ProConnect is calculating a tax liability of $7,332, but if I do the math based on the tax table, it should be $2,433. What is strange is that their marginal and effective tax rates are exactly the same (24%). Is their a rule that exists, where the remaining foreign income gets taxed at a flat 24% rate? I could not find this anywhere in the IRS tax code.
| Taxable Income | $30,553 |
| Up to $10,275 excluded | |
| Amount Taxable | $20,277 |
| Tax @ 12% | $2,433.24 |
Labels
3 Comments 3
sjrcpa
Level 15
02-25-2023
10:20 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
The remaining income gets taxed at the bracket that would apply if there was no foreign earned income exclusion.
The software should provide a worksheet.
The more I know, the more I don't know.
shackacctsvcs
Level 1
02-25-2023
11:33 AM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Perfect! Thanks for the explanation.
