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Foreign Earned Income Tax Worksheet
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While the Foreign Earned Income (FEI) Tax Worksheet is linked to Federal Form 1040 U.S. Individual Income Tax Return, it is only used if the return reports an amount on Form 2555 Foreign Earned Income, Line 45 for the Foreign Earned Income Exclusion. If that information is not present on Form 2555, the tax amount will be determined directly from the tax tables put out by the IRS or Schedule D (Form 1040) Capital Gains and Losses, whichever is applicable and the worksheet will not be used.

The Internal Revenue Code (IRC) explains that you must figure tax on the non-FEI using the rates that would have applied if the exclusion wasn’t taken. The Foreign Earned Income Tax Worksheet figures the applicable tax rate by combining the amounts (line 3) and subtracting from that tax calculation (line 4) the tax that would have been due on the foreign earned income (line 5). This does not apply tax directly on the FEI, but the exclusion does bump the tax rate up.

To view the Foreign Earned Income Tax Worksheet in your TaxAct® return:

Online Navigation Instructions
  1. From within your TaxAct Online return, click Print Center down the left column to expand, then click Custom Print.
  2. Check the items you wish to print (the top section contains individual forms or schedules and the bottom section contains documents or worksheets). You many need to scroll down in the section to locate the items.
  3. Click Print, then click the PDF link. Click the printer icon or save icon (available when you hover your mouse over the PDF form) to print or save the PDF copy.

Note. If you see a message indicating you have not paid your return fees, click the View/Pay your return fees link, which will direct you through the Paper Filing steps. Continue through the screens until you have processed the payment for your product fees and then repeat the steps to print.

Desktop Navigation Instructions
  1. Start your TaxAct Desktop program.
  2. Click Forms in the top left corner.
  3. Expand the Federal folder, then expand the Worksheets folder.
  4. Scroll down and select Form 1040 Foreign Earned Income Tax - Foreign Earned Income Tax Worksheet.
  5. Double-click the copy you wish to print.
  6. Click the Printer icon in the blue toolbar.

In the print dialog box that appears, you can send the output to a printer or a PDF document.

Related Links

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.