Form 2555, question about calculating number of days in my qualifying period

[tig2555]

Hello experts.

I am qualified under Bona Fide residence. I entered that information.

Regarding question 14(a), in 2017 I was in the USA for 42 days total. I entered that data into the software. 

I don't claim the Housing Exclusion, so I didn't complete part VI.

Question:

Then I am asked to provide "Qualified Days" ( line 38 in part VII). "Others, enter number of days in your qualifying period in 2017."  Is it 323 or 365 days in my case? Can it be something else? Note, I lived abroad in 2017 with the exception of the 42 days I was back to the USA on business.

thank you,

Tig

[CarolC]

You need to enter the number of days you were actually abroad.  So if you were in the US for 42 days, your total days abroad will be 323.  This is the number of Qualified Days you will enter for Form 2555.

Read this TurboTax article Filing Taxes While Overseas for more information.

[tig2555]

Your explanation makes sense to me. Is there an IRS page specifying the exact rules for calculating that number? I couldn't find one.

The article that you linked is a good intro to Foreign Earned Income for a beginner, but it doesn't have information about completing form 2555.

thank you

[CarolC]

@tig2555 See if this helps.  Read "Who Qualifies" on page 1.  <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/i2555.pdf">https://www.irs.gov/pub/irs-pdf/i2555.pdf</a>

[tig2555]

The following guide was very helpful to me <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p54.pdf">https://www.irs.gov/pub/irs-pdf/p54.pdf</a>

[tig2555]

@TurboTaxCaro, I found the link to Put. 54 in the instructions for the form 2555 that you attached :). Thanks!

[frisoulette]

It sounds like under the bona fide residence category, if we have that status for the full year, we don't have to deduct physical presence in the US from our time abroad, thus diminishing the amount of deduction allowed. I believe, after reading pub 54, that it is only in the case of acquiring bona fide status during the year, or losing it. I think this may be a common misconception, but would love to have an expert opinion!!