Form 2555: physical presence test overlapping calendar dates

PMS2147 · ‎March 23, 2020

Using the physical presence test, if filing across two years, can the periods overlap entirely?

For example: could a person use the same 365 day physical presence test dates: June 1, 2018 to May 31, 2019 when filing both their 2018 taxes & 2019 taxes?

There is very little written on this in the IRS guidelines except that:

"In determining whether the 12-month pe-riod falls within a longer stay in the foreign country, 12-month periods can overlap one another."

https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion-physical-pre...

KarenJ2 · ‎March 23, 2020

Yes, you only need to to have part of the 12 month period in 2019 for your 2019 tax return. The same is true for your 2018 return. The periods can entirely overlap.

How to figure the 12-month period.

There are four rules you should know when figuring the 12-month period.

Your 12-month period can begin with any day of the month. It ends the day before the same calendar day, 12 months later.
Your 12-month period must be made up of consecutive months. Any 12-month period can be used if the 330 days in a foreign country fall within that period.
You don’t have to begin your 12-month period with your first full day in a foreign country or end it with the day you leave. You can choose the 12-month period that gives you the greatest exclusion.
In determining whether the 12-month period falls within a longer stay in the foreign country, 12-month periods can overlap one another.

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View solution in original post

KarenJ2 · ‎March 23, 2020

Yes, you only need to to have part of the 12 month period in 2019 for your 2019 tax return. The same is true for your 2018 return. The periods can entirely overlap.

How to figure the 12-month period.

There are four rules you should know when figuring the 12-month period.

Your 12-month period can begin with any day of the month. It ends the day before the same calendar day, 12 months later.
Your 12-month period must be made up of consecutive months. Any 12-month period can be used if the 330 days in a foreign country fall within that period.
You don’t have to begin your 12-month period with your first full day in a foreign country or end it with the day you leave. You can choose the 12-month period that gives you the greatest exclusion.
In determining whether the 12-month period falls within a longer stay in the foreign country, 12-month periods can overlap one another.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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Form 2555: physical presence test overlapping calendar dates