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anubanu
New Member

I am repatriating to the US after 2.5 years abroad this coming September. Will I still be eligible for the Foreign Earned Income Exclusion?

 
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SusanY1
Expert Alumni

I am repatriating to the US after 2.5 years abroad this coming September. Will I still be eligible for the Foreign Earned Income Exclusion?

Maybe.  If you were a bona fide resident of the country you are returning from, and you qualify using the bona fide resident test you will qualify for a partial exclusion.

 

The partial exclusion gives you a prorated amount of the exclusion amount for the year based on the number of days in the 2020 that you are out of the country. 

 

It does not prorate the income itself but instead the exclusion amount. 

 

For example, in 2020 the Foreign Earned Income Exclusion is expected to be $107,600.  This results in an exclusion amount of $294.7945 per day.  

 

If you return to the U.S. on September 1st, you will have spent 244 days outside of the United States and would therefore be entitled to an exclusion of approximately $71,930.  

 

TurboTax will help you figure all of this out when it's time to file!  Just make sure that you use the bona fide resident test when filling out this section of the program.

 

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