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mcruffle
New Member

How do I get the Foreign earned income qualification when I have not yet lived overseas for a full year?

I moved overseas on July 29, 2023 and lived there through June 9 of 2024. I will go back on July 27, 2024.
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4 Replies

How do I get the Foreign earned income qualification when I have not yet lived overseas for a full year?

pk
Level 15
Level 15

How do I get the Foreign earned income qualification when I have not yet lived overseas for a full year?

@mcruffle  agreeing with the general information referred to by my colleague @NCperson , as I see the situation needs some more clarification.

(a) Should we assume that you are an US person ( citizen / GreenCard) ?

(b) you left US  on July 29th. 2023   -- was this the date you arrived or was this the first full day abroad ?  Which country ?   Your  foreign tax-home generally starts  on the first full day abroad ( first 24 hour  date ).

(c)  you came  back to US on June 9th. 2024  -- again is this the day you left the foreign country or entered  US ?

(d) You say you plan to go back on July 27th.   Assuming  that you have the freedom to  change  this arrival date and do want to tale advantage of the foreign earned  income exclusion, it would have been great if you could   have arrive abroad ( anywhere outside of US )  by June 9th of 2024.   Correction ---  if your test period is July 30th of 2023  ( assuming that your first full 24 hr. day abroad is Jul. 30th 2023 ),  through July 30th 2024, then  you would meet 330 days abroad  around  July 15th  ( give or take )  ---- Correction is based on relooking at my earlier answer  based on  prompt from my colleague @NCperson  ( thank you )

(e)  If you cannot  be in your foreign tax home ( full 24 hr. days   )  by July 15th  then  you cannot meet the    Physical Presence Test  ( a continuous 12 month period  satisfying  330 days abroad).

(f) this  then  leaves you with  Bona-fide resident test  ( foreign country recognizes you are a resident and IRS approves that ) or you take advantage of foreign tax credit / deduction.   Do you need help on this ?

 

pk

How do I get the Foreign earned income qualification when I have not yet lived overseas for a full year?

@pk if 330 days out of a 12 month period needs to be outside the country and he arrived outside the country on July 30, 2023 and arrived back in the US on June 9, 2024 that is 315 days outside the country. 

 

So if he has to satisfy 15 more days outside the country no later than July 30, 2024, doesn't that mean he must arrive outside the country no later than July 15 (so there are 15 more days outside the country within the 12 month period)???

 

isn't that how it works?  

pk
Level 15
Level 15

How do I get the Foreign earned income qualification when I have not yet lived overseas for a full year?

@NCperson , my error -- don't know where in the cloud my  head was  ( Alzheimer or just 83 years  ?).  You are corrected  and I have updated the earlier reply.    Thank you

 

pk

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