Does Form 2555 preclude the $1400 recovery credit?

[Greta]

Client's entire 100K income was reduced to zero because of Form 2555. The software gives him the $1400 recovery credit. Is that correct?

[Taxprohere]

Yes, I had a client with FEIE for 2020 qualifying for EIP1&2, and remember finding the guidance that it's based on income after exclusion.  Go figure!  From what I remember, you should find that info on irs.gov.

[Greta · Accepted solution]

The software agrees with you, it's giving him the recovery rebate.