Form 2555-T: Total Foreign Earned Income has a value for foreign earned income but dates for the foreign earned income exclusion aren't entered.

[l529]

Hi, I been trying to file but I keep on getting this error that says I need to fix the date of my physical presence test. I have filled in 02/01/2019 to 01/31/2020 as the dates. I have repeatedly refilled in the dates, entered my employee's information numerous times and I would still get this same error. Is there something wrong with my dates? Is there a way to fix this issue? Thanks

[KarenJ2]

I cannot reproduce your issue.  Did you try different dates?  

[l529]

Hi @KarenJ2 , thanks so much for getting back to me. 

Yes I have. I also read another question on this community with the same issue and he said that the message is misleading in that it was actually the residency date that was the issue and not the physical presence date. Link below:

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/how-can-i-fix-this-form-2555-t-t...

I tried this too with a random date but it still doesn't work. I have no idea what the problem is. I did revoke my Foreign Earned Income Exclusion last year, would that be an issue?

Also, when I don't get this date error, I would get a message saying that I didn't write out the information about my foreign employer, which I have, many times. I've also tried re-entering this information (several times). It would still ask me to fill in my employer's US address instead of foreign (It shows a shot of the form and won't allow me to check the box that says my employer doesn't have a US address). These are the two main messages I would get.

[KarenJ2]

If you revoked the foreign earned income last year, you cannot claim it again for 5 years.  You can only use the foreign tax credit for the next 5 years.

Once an election is revoked, the individual may not make another election before the sixth taxable year after the first year for which the revocation was effective.

Example: If an election is revoked for taxable year 2013, the taxpayer may not make another election until taxable year 2019. 

[l529]

Hi KarenJ2

As this is the case, how should I file my income tax from overseas?

I'm a California resident, would I be filing as a non-resident? I also know there is a safe harbor available for individuals leaving California under employment-related contracts. How will I know I am considered part of this? I have only stayed in California in 2019 for a total of 7 days to visit.

Thanks.

[KarenJ2]

You can use the foreign tax credit to help offset double taxation.

For the safe harbor your employment contract must be over 18 months. 

The employment contract has to meet the time period on its face; it can’t do so via renewals.  Nor does a series of separate contracts, even with the same employer, adding up to 18 months suffice.  California FTB as you know, is extremely aggressive. 

The Safe Harbor Rule : Safe harbor is available for certain individuals leaving California under employment-related contracts. The safe harbor provides that an individual domiciled in California who is outside California under an employment-related contract for an uninterrupted period of at least 546 consecutive days will be considered a nonresident unless any of the following is met: 

• The individual has intangible income exceeding $200,000 in any taxable year during which the employment-related contract is in effect 

• The principal purpose of the absence from California is to avoid personal income 

es 

2018 CA Guidelines for Determining Resident Status