foreign exclusion

[Marjorie S]

client has established residence in Ukraine and wants to use the foreign income exclusion to not pay US taxes

I may be wrong but I believe that exclusion is for US citizens earnings from abroad

US income is taxed

Please respond

Thank you

[George4Tacks]

1. Is your client a US Citizen?

2. Is the income from outside the US?

There are two possible criteria to exclude foreign income "bona fide resident" is one of them. The other is physical presence. 

Something like this might be helpful and you get come CPE for only $10 (or wait until next month and get it free) https://www.cpaacademy.org/self_study_show/a0D2S00000jUR7IUAW

[BobKamman · Accepted solution]

No, the foreign tax credit is for US taxpayers who are taxed on the same income by another country.

If you are a U.S. citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income. However, you may qualify to exclude your foreign earnings (from work, not from investments or other sources) from income up to an amount that is adjusted annually for inflation ($103,900 for 2018, $105,900 for 2019, and $107,600 for 2020).