Question about reporting income while teaching abroad

[purpletrees4792]

I started teaching in South Korea in June 2016 and will return June 2017. I will have worked the whole year here, but I have only worked 7 months so far. Do I file for the 7 months now and the rest of the 5 months next year?

[LinaJ2018 · Accepted solution]

You have to meet the physical presence test requirements before you can file the exclusion. Then you can pro-rate your total foreign earned income exclusion between 2016 and 2017.

In your situation, you must be physically present in a South Korea for at least 330 full days during the 12-month period starting June 2016. You have to wait until after July 2017 to file your 2016 return to make yourself eligible. 

Here are your two options :

1.  You can file Form 2350 for an extension to file your 2016 tax return.  

      See https://www.irs.gov/uac/about-form-2350      OR 

2.  File your return timely without claiming the exclusion and then file an amendment return after July 2017. 

[Edited 1/31/2017]