CarolC
Level 6

Get your taxes done using TurboTax

Actually, there is a little more to it than that.  And TurboTax can help you figure this out.

Your time away from the US needs to be consecutive in order to be eligible to exclude wages from US income taxes.  If you were physically present in a foreign country for 330 full days during a period of 12 consecutive months, then you may qualify for the Foreign Earned Income Exclusion.  You can choose the 12-month period that maximizes the exclusion in the years you were not in the US.  Also, your tax home must be in a foreign country.

If you meet this test, you may receive an exclusion on your tax return of up to $102,100 of wages earned abroad.  If you don't meet the test, and paid foreign income tax abroad, you may be eligible for the Foreign Tax Credit or the Foreign Tax Deduction.  

Click the IRS link below to determine if are eligible for any exclusions or deductions: