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About mnioj

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  • Location Hamburg
  • Nationality USA
  1. Last year, I used the FEIE to exclude my income when filing my US taxes. At the end of 2021, I thought I would make a contribution to my roth IRA ($1500), forgetting that for 2021, all of my income was German-based (in the prior year, I had a mix of US and German income). Now, my googling indicates that if I claim the foreign tax credit instead of FEIE, I can report taxable income and my contribution is valid.    However, I now received my Steuererklaerung from my accountant, and it seems I will receive the full amount I was taxed in 2021, since my income was rather low ~15000EUR and I had a lot of deductible expenses. It seems then, that I cannot claim the FTC, correct? I'm basing this on p54 ( 2021 Publication 54 ( ), which states " The amount for which you can claim a credit is not necessarily the amount withheld by the foreign country. You can’t take a foreign tax credit for income tax you paid to a foreign country that would be refunded by the foreign country if you made a claim for refund."    So - it seems my course of action is to forget about the FTC for this year, continue with FEIE, and withdraw the contribution I made, plus any earnings. Then, I have to pay taxes in the US on any of possible these earnings, correct?    Now one possible curveball (and maybe better course of action?) that occurred to me today: While I requested the contribution with the broker at the end of December 2021 (I think Dec. 28 or something), it is listed as having a "contribution trade date" of January 2, 2022 (I also confirmed with my bank that the transfer of funds occurred January 2, 2022. Could I, for tax purposes, consider this as a 2022 roth IRA contribution, and then in my tax return for 2022 next year use the FTC to make this valid? My income and taxes will be substantially higher this year due to a new job and few expected deductible expenses. My only question is about the timing - I'm not sure if I need to claim this contribution for 2021 since I requested it to occur in 2021 but it didn't "fully"  process until 2022.