USA Tax question

[cali-kay]

Quick question for USA citizens

Can you claim foreign earned income credit(i think 91k) and foreign housing credit on top of the 91k. 

Is the two values cumulative and are they added together or does the 92k include both EIC and housing credit.

[Vulcanl]

Cali-Kay,

There is no such thing as a 'foreign earned income credit'

There is a Foreign Earned Income Exclusion (FEIE) - that was USD 91,400 in 2009 (not sure what it is this year).  There is also a Foreign Tax Credit.

The FEIE is basically a 'trigger point' up to which no tax is due on any income below that 91,400 amount.  The tax credit is what the term implies.

I think I understand the spirit of your question in any event.  The answer is yes, but only on income that has NOT already been excluded via the foreign earned income exclusion (FEIE) - you cannot 'double-dip' and use the same income to claim for additional credits. 

All of this is well-covered in publication 54 at the irs.gov website

One more thing...it is not advisable to claim for Foreign Housing exclusion and deduction if you are doing taxes on your own (without the help of a professional) as the IRS looks for these and they tend to generate audit flags.