Hi there,
In 2011, I spent 11 months working the US, and moved to the UK in early December. Therefore, most of my income was earned in the US (at appropriate tax rate), with one payment made to me by my employer (included a lump sum amount).
I earn above the exclusion amount and am wondering whether it makes sense for me to take the foreign earned income exclusion, considering I will have only been in the UK for 1 month and I would have to get an extension until January 2013 to claim the physical presence test.
Does taking the foreign tax credit necessitate any type of physical presence test and would I be excluded from using the foreign earned income exclusion in the future?
Only thing to note is that my tax rate in the UK will be less than in the US since my income for the UK's tax year is based on 5 months income/lump sum.
Thanks for the help!
