Foreign Earned Income Exclusion

Forum|Forum|2 years ago
November 14, 2023
2 replies
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The IRS has revised its guidance for people fleeing conflict and other “adverse conditions” in certain foreign countries, including Ukraine.

https://www.irs.gov/pub/irs-drop/rp-23-19.pdf

according to this document IRS provides a waiver, under Section 911(d)(4) of the Tax Code, of the time requirements for individuals who exclude their foreign-earned income when they must leave a foreign country because of war, civil unrest or similar adverse conditions in that country.

I arrived from Ukraine under the U4U program in February 2023(more than 183 days). Does this mean that I can use this exclusion and file taxes as a non-resident?

Not A Product Question

Best answer by pk_

@selldon , the ref'd Revenue Procedure really applies only to US expats ( in this case US citizens . GreenCard ) whom

(a) have a foreign tax home

(b) are generally are eligible for Foreign Earned Income exclusion,

(c) are forced to abandon foreign tax-home prematurely due to adverse conditions ( like war, natural disasters, pandemic etc. ) and therefore cannot meet the residency requirements imposed by section 911 (d)(1)

Under this procedure, such a person can meet the residency duration requirement and thus be able to use Foreign Earned Income Exclusion.

In your case by virtue of being a Non-Resident Alien for the part of the year , where you are taxed only on UJS sourced income, you essentially are excluding any foreign income prior to being admitted to the USA.

Does this make sense or am I not understanding what you are trying to achieve ?

Is there more I can do for you ?