If you qualify, you can use Form 2555 to figure your foreign earned income exclusion and your housing exclusion or deduction. You cannot exclude or deduct more than your foreign earned income for the year. The maximum exclusion for 2020 is $107,600.
You must first report this income on your tax return in order for it to then be excluded from the total income. If the income was reported to you on a US tax form, it will be entered into your account in the appropriate section.
If it is foreign compensation, you can enter this into your account by going to:
- Federal Section
- Less Common Income
- Other Compensation
- Foreign Earned Compensation