RS3
Level 2

Foreign Earned Income Exclusion (FEIE) and mid-year move back to US

In 2022 I lived abroad for part of the year until we moved back to the US in July of that same year and started working for a US employer in August. I’ve gone through the Foreign Earned Income Exclusion (FEIE) steps in TT and the result was that my foreign income qualified for the FEIE, but it bumped up my federal tax due anyway. I do pass both the Bona Fide Residence test and Physical Presence Test since we’ve lived abroad for 5+ years. I wonder why it bumps up my taxes, I read the FEIE is prorated in my case? Thanks