Alpineprince wrote:File in Peru first and then take the foreign earned income credit off your US taxes.
Have you actually done this?
My accountant in the US is looking into the foreign earned income credit. From what I researched on my own, the foreign income credit is only applicable to income you earned in a foreign country. If you earned the income in the US, it isn't foreign.
BUT, my accountant isn't sure about that, and I guess he should know better than me. So he's looking into it.
I'd be very curious to hear if the tax I paid in Peru can actually be deducted from what I paid in the US.
But you are not only talking about using the foreign earned income credit, but filing in Peru FIRST... so is this just an idea you have, or did you actually do it?
And WHY would you do it? And actually, HOW? What info would you give to Peru to file if you haven't already prepared your 1040 in the US?? I'm really not understanding. I mean, you've already paid the tax in the US even before you file there (via withholding or whatever), so if you file in Peru first and they say "you owe this much on your stated income", wouldn't you then have to pay that to Peru? And then request a huge refund from the US after you file your foreign earned income credit? That just doesn't make any sense to me.
Would love to hear more. Thanks.
By the way, I should mention that my accountant in Peru did not know how to handle my taxes when I first brought it up with her. She actually had to go to SUNAT and meet with them and explain the whole situation to get the answers she needed. So be aware that even a competent accountant may not have the answers on hand and might have to inquire with SUNAT about how to handle your particular tax situation.