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Client is trying to minimize US taxation, but doesn't qualify both tests, been in that country for only 217 consecutives days, so if form 2555 doesn't help, where do I report the taxes he paid in the foreign country? How can I reduce the taxes for that foreign income?
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Foreign taxes paid on income also taxed by the US goes on Form 1116.
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Does he qualify for a partial exclusion? Will he qualify some time in 2020?
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He is planning to stay a total of two years, so yes he will work 2020 in that country. He is a US legal Resident, so he's got a permit of two years to work abroad
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File the 2019 return when he has hit 330 days in the foreign country. He'll get a prorated foreign income exclusion for 2019, provided he meets the other requirements (tax home?)
Ex-AllStar
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Should I ask for an extension to file, and then when the 330 days are over, do the efiling?
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Yes. But consider whether claiming the foreign tax credit yields a better result, too. Work the return both ways.
Ex-AllStar
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My client began getting foreign earned income on June 18, 2022, do I have to file for an extension throu June 2023 in order to qualify for the foreign Earn Income exclusion?
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@blh1218 wrote:
My client began getting foreign earned income on June 18, 2022, do I have to file for an extension throu June 2023 in order to qualify for the foreign Earn Income exclusion?
Yes, you can't file a tax return claiming the Physical Presence Test until they have actually met that 330-day test (so they may qualify in May).
