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I need some advice with a best course of action:

I'm an American citizen working overseas and I get the Foreign Earned Income Exclusion (FEIE).
Because I have very little “earned income”

Need more info... do you have children?

You don't have to claim FEIE. If you don't claim FEIE then you get the child tax credit and can contribute to a Roth.

My family lived overseas last year and didn't use FEIE. Our earned income was around $12k (AGI was ~$80k), so I was able to max both our Roth accounts. And with two children we were able to actually get a tax rebate of over $800, and paid zero income tax during the year... while never setting foot in the USA. Strange tax rules we have.

Anyway, just wanted to make sure you realized that you don't have to use FEIE.

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