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Topic: Foreign Earned Income Exclusion: How Many Days?  (Read 1384 times)

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Foreign Earned Income Exclusion: How Many Days?
« on: September 18, 2011, 09:01:51 PM »
Hi there,

I take these forms very literally and I do not understand line 14 on the 2555-EZ.

"Enter the number of days in your qualifying period that fall within 2010"

Does that mean the number of days I was out of the UK? or the number of days I was in the USA? whether on business or pleasure?

I really don't understand why the number of days I was in the USA visiting family would effect whether I end up paying any taxes or not.

Thank you again for any advice!
Petrina


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Re: Foreign Earned Income Exclusion: How Many Days?
« Reply #1 on: September 18, 2011, 09:08:50 PM »
Because to qualify for the exclusion, you need to have been out of the US for a minimum number of days, and that includes holiday time spent in the US. You put in the number of days you were out of the US.
Arrived as student 9/2003; Renewed student visa 9/2006; Applied for HSMP approval 1/2008; HSMP approved 3/2008; Tier 1 General FLR received 4/2008; FLR(M) Unmarried partner approved (in-person) 27/8/2009; ILR granted at in-person PEO appointment 1/8/2011; Applied for citizenship at Edinburgh NCS 31/10/2011; Citizenship approval received 4/2/2012
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Re: Foreign Earned Income Exclusion: How Many Days?
« Reply #2 on: September 18, 2011, 09:27:30 PM »
Thank you so much for your reply, I really do appreciate it.

Is line 14 the number of days I am in the USA? I have to divide line 14 by 365 and take that number (0.049) and put it on line 21 as "other income"  (?)

Why would this be income? I didn't make any money so I'm not even sure I'm answering the question correctly. Column C says "Number of days in U.S. on business" so maybe I should put zero? Line 14 is not clear at all. So confused!

(I am well within the limit of days and these were vacation not business anyway.)

Petrina


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Re: Foreign Earned Income Exclusion: How Many Days?
« Reply #3 on: September 18, 2011, 09:34:26 PM »
If you were not in the US on business at any time and you lived in the UK the whole of 2010, you put 365 in line 14. The reason it is worded that way is that the qualifying period for the FEI can be put over two partial years to make up the full 330 days if necessary. If you were resident in the UK the whole time in 2010, just put 365 and follow the remaining instructions.
Arrived as student 9/2003; Renewed student visa 9/2006; Applied for HSMP approval 1/2008; HSMP approved 3/2008; Tier 1 General FLR received 4/2008; FLR(M) Unmarried partner approved (in-person) 27/8/2009; ILR granted at in-person PEO appointment 1/8/2011; Applied for citizenship at Edinburgh NCS 31/10/2011; Citizenship approval received 4/2/2012
FINALLY A CITIZEN! 29/2/2012


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Re: Foreign Earned Income Exclusion: How Many Days?
« Reply #4 on: September 18, 2011, 09:35:09 PM »
By the way, have you read the instruction form for 2555-EZ? It actually explains how to fill it out.
Arrived as student 9/2003; Renewed student visa 9/2006; Applied for HSMP approval 1/2008; HSMP approved 3/2008; Tier 1 General FLR received 4/2008; FLR(M) Unmarried partner approved (in-person) 27/8/2009; ILR granted at in-person PEO appointment 1/8/2011; Applied for citizenship at Edinburgh NCS 31/10/2011; Citizenship approval received 4/2/2012
FINALLY A CITIZEN! 29/2/2012


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Re: Foreign Earned Income Exclusion: How Many Days?
« Reply #5 on: September 19, 2011, 12:00:46 AM »
Thank you again! and yes I did read the instructions, I've been reading so many I think they are all blurring together or something. I didn't know what it meant by qualifying period. I do try to figure it out before posting, I just gave up  ;D
Petrina


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Re: Foreign Earned Income Exclusion: How Many Days?
« Reply #6 on: September 19, 2011, 09:35:16 AM »
I know it's confusing, but the best way is as you go line by line to see what the instruction form says for that line. It defines qualifying period for you and gives an example.
Quote
Your qualifying period is the period during which you meet the tax home test and either the bona fide residence test or the physical presence test.

Example. You establish a tax home and bona fide residence in a foreign country on August 14, 2010. You maintain the tax home and residence until January 31, 2012. The number of days in your qualifying period that fall within 2010 is 140 (August 14 through December 31, 2010).
Arrived as student 9/2003; Renewed student visa 9/2006; Applied for HSMP approval 1/2008; HSMP approved 3/2008; Tier 1 General FLR received 4/2008; FLR(M) Unmarried partner approved (in-person) 27/8/2009; ILR granted at in-person PEO appointment 1/8/2011; Applied for citizenship at Edinburgh NCS 31/10/2011; Citizenship approval received 4/2/2012
FINALLY A CITIZEN! 29/2/2012


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