Foreign earned income exclusion-physical presence test

Forum|Forum|6 years ago
January 20, 2020
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Hi, I moved to US at end of June on H1B and was living and working in my home country prior to this. For tax purposes, I am filing as resident alien. In order to deduce my foreign earned income prior to coming US, do I qualify for the physical presence test as I was living outside US prior to moving or the 330 days of presence should include only 2019? Thanks.

Best answer by linaj20201

Yes, it is true that the Foreign Earned Income Exclusion only applies to US citizens or residents. If you first came to the US is in June 2019, though you meet the Substantial Presence Test SPT Substantial Presence Test, you are considered as dual-status. You may only apply the exclusion on a foreign income after June 2019, if there is any. You cannot apply to your foreign income before you move to the US.

@andreal

klehnhardt

Level 10

You meet the physical presence test if you are physically present in a foreign country or countries 330 full days during a period of 12 consecutive months. The entire 330 days does not need to be in the same calendar year.

You may also be entitled to exclude from income the value of meals and lodging provided to you by your employer. Refer to Exclusion of Meals and Lodging in Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad

andrealAuthor

Level 2

Hi,

Today i visited an accountant office and they told me i can't get exclusion for my foreign income before coming to US as I was not a resident alien back then. Is this true?