Pamo

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  • in reply to: Foreign Income exclusions –> interest income #3280
    Pamo
    Participant

    That’s great, thank you for all your help and explanation. That’s exactly what I was looking for. Very much appreciated!

    in reply to: Foreign Income exclusions –> interest income #3273
    Pamo
    Participant

    Hi, thanks, yes, this is starting to get to the core of my question. It’s exactly as you are discussing it:

    1) is the tax on interest effectively the tax rate on your income AFTER the FEI is deducted, (which would often be zero or a much lower rate), or

    2) is the tax on the interest the rate you would have paid if the FEI was not deducted?

    I think you are saying in your most recent post that the tax rate is what you would have paid, as if you had not been able to deduct the FEI. I.e., if my tax rate would have been 25% on my wages, then the tax rate on the interest would be on top of that (probably 25% but could also increase into a higher tax bracket).

    Am I understanding you correctly?

    Thanks for your time to help with this issue…

    in reply to: Foreign Income exclusions –> interest income #3270
    Pamo
    Participant

    Dear Kaneohe,

    Thanks very much, that is very helpful… My capital loss carryover is the full $3,000.

    So the standardized deduction would not also counteract the interest income?

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