Hi,

Married couple , wife work in USA and hubby in UAE. Hubby made $47000 and no tax paid , so i took $47k exclusion. Only with wife's income they are getting $2000 refund and when i add hubby's income and exclusion for the same amount  their Tax liability increasing and owes $500. Did i make any mistake? I don't have much experience on this. Why Tax liability increases even though i took Foreign tax exclusion. Please reply

GK