LinaJ2020
Expert Alumni

Deductions & credits

To clarify, you would still need to stay there for at least 330 days, however, you are allowed to have an abode (residence and connections) in the US, not just the foreign tax home.  The new law makes it clear that contractors or employees of contractors providing support to U.S. Armed Forces in designated combat zones are eligible to claim the foreign earned income exclusion even you have a US abode. 

 

Under prior law, many otherwise eligible taxpayers who lived and worked in designated combat zones failed to qualify the foreign earned income exclusion because they had an abode in the United States. 

 

Your blue link from above does not work anymore. Here is the new link:  https://www.irs.gov/newsroom/new-law-makes-clear-combat-zone-contract-workers-qualify-for-foreign-ea...

 

Generally, to claim the exclusion, you have to have a foreign tax home.  Your tax home is your regular or principal place of business, employment, or post of duty, regardless of where you maintain your family residence.  Prior to the new law, you cannot have an abode in the US.  The location of your abode is based on where you maintain your family, economic, and personal ties.  If you have an abode in the US, you are not considered as having a foreign tax home, thus you will not qualify for the exclusion. 

 

With the new tax law, for those who work in the combat zones, you are allowed to have an abode in the US while working overseas in the combat zones.  Read here https://www.irs.gov/pub/irs-pdf/i2555.pdf, page 1 under "Who Qualifies"

 

What does the error message say?  

 

@BeeGee

 

 

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