I appreciate the last two postings, and perhaps I am being obtuse, but how do they address the question I posed in my OP, which I will repeat: "I, perhaps misguidedly, made an IRA contribtion for the current tax year, based on the small amount of foreign earned income I will have, about $5K US or $7K AUS. Because I know know that if the foeign earned income is excluded, I will have no income for the year and thus shouldn't have made an IRA contribution, can I? "Just not take the exclusion. Pay the US taxes on the $7K AU ($5K US)? How and when or who determines the currency conversion rate to determine how much I made, can contribute, et-cetera? "To complicate things, My partner is a high-earner. Can she take the exclusion and I do not?" Now to summarize:
- Should I have made the IRA contribution? (If not, how can I rectify this? Amended taxes?)
- Must I take the exclusion and/or tax credit? Will this change the answer to question 1?
- How is the U.S. tax determined on foreign income? What is the foreign exchange rate? Who sets it? When?
- Do any of the above answers change, as I am filing jointly and my spouse will be using all available means to lower her high income.
Thanks again.