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Level 2
January 26, 2022
Question

Foreign Earned Income Tax Exclusion

  • January 26, 2022
  • 1 reply
  • 8 views

I worked and lived as a civilian overseas in the middle east (Qatar) for a U.S. contractor from March 6, 2020 until July 7, 2021. I did not return to the U.S. at all during that time. For the tax year 2020 I claimed, and received, the foreign earned income tax exclusion using the physical presence test. When I file for tax year 2021, can I claim the foreign earned income tax exclusion for the months Jan. 1, 2021 to July 7, 2021? I returned to the U.S. on July 7, 2021. Do I need to change my tax year? Thank you.

    1 reply

    Level 15
    January 26, 2022

    You can.  But you once again need to use the physical presence test for the period July 8 2020 to July 7 2021.  Then all of your foreign earned income for the period falls under the exclusion rules.

     

    Here's a ton of fun on the IRS site.

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    Level 2
    January 26, 2022

    Thank you for the reply and link. Which TurboTax version should I use? A little more information about me:            - I am an unmarried, single filer, no dependents

    - I will have some residential rental income.

    - My investment income is minimal

    Thanks again

    Level 15
    January 26, 2022

     Deluxe or higher.  Good luck!

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