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OK this might sound foolish (the bad kind), but please bear (or bull as the case may be) with me.

I reside abroad and my income does not exceed the foreign income exclusion. As a result I have no adjusted gross income from which to contribute to my Roth IRA. Being foolish (the good kind) I know the importance of contributing to an IRA. Thus, last year I returned to the US and earned $2000 in taxable income.

Great I can do my Roth. But alas, Turbo Tax calculates that I have a negative adjusted gross income since I qualify for some foreign tax credit (form 2555).

My question is can I just ignore this tax credit? I really prefer to make my IRA contribution. Also any help on this credit would be helpful. I just filled out the questions on Turbo Tax and it found this credit. Something to do with my low income abroad and housing credits???

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