Foreign Earned Income Exclusion

[selldon]

The IRS has revised its guidance for people fleeing conflict and other “adverse conditions” in certain foreign countries, including Ukraine.

https://www.irs.gov/pub/irs-drop/rp-23-19.pdf

according to this document IRS provides a waiver, under Section 911(d)(4) of the Tax Code, of the time requirements for individuals who exclude their foreign-earned income when they must leave a foreign country because of war, civil unrest or similar adverse conditions in that country.

I arrived from Ukraine under the U4U program in February 2023(more than 183 days). Does this mean that I can use this exclusion and file taxes as a non-resident?

[tagteam]

@pk?

[pk · Accepted solution]

@selldon , the ref'd Revenue Procedure really applies only  to US expats ( in this case US citizens . GreenCard   ) whom 

 (a)  have a foreign tax home 

 (b)  are  generally are eligible for Foreign Earned Income exclusion,

 (c)  are forced to abandon   foreign tax-home prematurely due to adverse conditions ( like war, natural disasters, pandemic etc. ) and therefore cannot meet the residency requirements imposed by section 911 (d)(1)

Under this  procedure,  such a person can meet  the residency duration  requirement  and thus be able to  use  Foreign Earned Income Exclusion.

  In your case   by virtue of being a Non-Resident Alien  for the  part of the year , where you are taxed only on UJS sourced income, you essentially are excluding  any foreign income  prior to being admitted to the USA.

Does this make sense  or am I  not understanding  what you are trying to achieve ?

Is there more I can do for you ?

pk

[selldon]

This answered my question. Thank you!