During 2021, I moved back to the US from living abroad for multiple years. I moved back to the US in June, and continued working for the same company through early November.
When I received my W2 from the company last week, they provided me with two of them, one which covers my time abroad (Jan 1 - mid-June), and the other which covers my time while living in the US (June - early Nov).
It is my understanding from the IRS website that I can choose a full 12-month window (June '20 - May '21) to allow my full amount earned at this company to be excluding from my Gross Income for 2021. I am referencing the example under How to Figure the 12-Month Period here: Foreign earned income exclusion physical presence test . I also copied the paragraph below:
Example:
You live, work, and have a tax home in New Zealand from January 1, 2020, through August 31, 2021, except that you spend 28 days in February 2020 and 28 days in February 2021 on vacation in the United States. You are present in New Zealand for at least 330 full days during each of the following two 12-month periods: January 1, 2020 - December 31, 2020, and September 1, 2020 - August 31, 2021. Your qualifying 12-month period for 2020 is January 1, 2020 – December 31, 2020. For 2021, you may choose September 1, 2020 – August 31, 2021 as your qualifying period. Refer to Chapter 4, Figure 4-B in Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad.
What I am curious about, and am looking for thoughts from the community on, is whether or not I can actually identify the income for both W2s as 'Foreign Earned' income. I believe the answer is yes per the IRS example above.
