Singapore Expats

Hi,

I am a US permanent resident working in Singapore and had a question about the foreign earned income exemption when filing US taxes.

My wife's income is less than 92900. Can I still take the 92,900USD exemption for her? i.e. can I take a total of 2 x 92,900 exemption on our total income (1 for me and the other for my wife) ?

Would greatly appreciate a knowledgeable reply.

Many Thanks in advance !

Short answer is no. If she earned S$30K you cannot apply your income to her earned income exemption. Unlike other aspects of "married, filing jointly", the earned income exemption only applies to individual incomes.

I came across this on the IRS Web site and thought it would help, especially the last line.
Limit on Excludable Amount

You may be able to exclude up to $95,100 of your foreign earned income in 2012.

You cannot exclude more than the smaller of:

$95,100, or

Your foreign earned income (discussed earlier) for the tax year minus your foreign housing exclusion (discussed later).

If both you and your spouse work abroad and each of you meets either the bona fide residence test or the physical presence test, you can each choose the foreign earned income exclusion. You do not both need to meet the same test. Together, you and your spouse can exclude as much as $190,200.

conversant wrote:Together, you and your spouse can exclude as much as $190,200.

The point is that if you make 150K and the wife makes 40K, you can't add the exclusions together. You get to exclude $95, 100, she gets to exclude $40K.