I am a resident alien in 2024 for tax purposes because of the substantial presence test.
I left the USA permanently on March 4th 2024 to move to a foreign country/abroad and have been abroad since then.
The physical presence test states that I need to be present for 330 consecutive days in any 12 month period in order to qualify as someone who lives abroad.
When selecting the 12 month period can I include days from the following tax year (i.e. 2025) even though the tax year I am filing for is 2024?
For eg.
5th March 2024 - 4the March 2025
Is the above 12 month period valid ? (I am including 1st January 2025 - 4th March 2025 which are not part of 2024 but I am filing a tax return for 2024 which ends on 31st December 2024)
Thanks
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For a US Taxpayer (or resident for tax filing purposes), in order to claim the Foreign Earned Income Credit, they must meet the 330 days in 12 months requirement.
I think you may be getting this confused with residency ending date.
From what I'm reading, for your situation, I believe you would be considered a Dual-Status Taxpayer and file Form 1040NR for tax year 2024 with the residency end date of March 4, 2024.
Of course foreign tax laws are complicated and you may have more factors to consider. If you think you are a dual status taxpayer for 2024, I suggest you contact Sprintax, they deal with Form 1040NR (TurboTax does not) .
HERE is a link to an IRS Interactive Tax Assistant with topics relating to International questions, which you may find useful.
"You must file Form 1040-NR, U.S. Nonresident Alien Income Tax Return, if you are a dual-status taxpayer who gives up residence in the United States during the year and who is not a U.S. resident on the last day of the tax year. Write "Dual-Status Return" across the top of the return."
IRS Residency starting and ending dates:
"Residency ending date under the substantial presence test
In general, if you meet the substantial presence test, your residency ending date is your last day of presence in the United States followed by a period during which:
Under the general rule, the residency ending date is December 31 of the calendar year in which you left the United States.
However, your residency ending date is the last day during the calendar year that you are physically present in the United States if, for the remainder of the calendar year:
"Statement required to establish your residency termination date.
You must file a statement with the IRS to establish your residency termination date. You must sign and date this statement and include a declaration that it is made under penalties of perjury. The statement must contain the following information (as applicable).
Your name, address, U.S. TIN (if any), and U.S. visa number (if any).
Your passport number and the name of the country that issued your passport.
The tax year for which the statement applies.
The last day that you were present in the United States during the year.
Sufficient facts to establish that you have maintained your tax home in, and that you have a closer connection to, a foreign country following your last day of presence in the United States during the year or following the abandonment or rescission of your status as a lawful permanent resident during the year.
The date that your status as a lawful permanent resident was abandoned or rescinded.
Sufficient facts (including copies of relevant documents) to establish that your status as a lawful permanent resident has been abandoned or rescinded.
If you can exclude days, as discussed earlier under De minimis presence, include the dates of the days you are excluding and sufficient facts to establish that you have maintained your tax home in, and that you have a closer connection to, a foreign country during the period you are excluding.
Attach the required statement to your income tax return. If you are not required to file a return, send the statement to the following address.
Department of the Treasury
Internal Revenue Service Center
Austin, TX 73301-0215
You must submit the statement on or before the due date for filing Form 1040-NR. The due date for filing is discussed in chapter 7.
If you do not file the required statement as explained above, you cannot claim that you have a closer connection to a foreign country or countries. This does not apply if you can show by clear and convincing evidence that you took reasonable actions to become aware of the requirements for filing the statement and significant steps to comply with those requirements."
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The 12 months can start any month but must include an entire tax year.
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