foreign earned income exclusion

Absolutely not.

1. We have no idea how you answered the five questions.
2. We have no idea whether you even understood the five questions being asked.
3. We don't have enough detail to determine your tax home.
4. We have no idea when you are out of the country (US) and on foreign soil nor do we know where and how you live when on foreign soil.
5. We have no idea whether your work in Italy is temporary or an indefinite assignment.

If I had to guess that by earning 80% of your income in the US, you are saying that you only spend 20% of your time on foreign soil, I would also guess that you are domiciled in the US and the US is your tax home. I would also guess that the US is your tax home. I would also guess that you are NOT a bona fide resident of a foreign country because you could not show an uninterrupted period of one calendar on foreign soil nor could you pass the physical presence test of 330 full days on foreign soil in a 12 month period to be eligible to exclude your foreign income.

If you're a resident alien, the US is your tax home. Period, end of discussion. US residents cannot exclude foreign income, although if you paid tax on it you can claim credit for tax paid on form 1116.

You need to reread the rules for US resident aliens. See b and c below.

You must be one of the following. a. A U.S. citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year.

b. A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect and who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year.

c. A U.S. citizen or a U.S. resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.

Il giorno martedì 25 marzo 2014 12:32:25 UTC-4, Alan ha scritto:

You are right, I should have given more details. About the Tax home. Based on what the IRS website says: Your tax home is the general area of your main place of business, employment, or post of duty,

--> I am employed by the Italian branch, I receive the salary from them. The presence in the US is temporary.

Again, on the IRS website: You are not considered to have a tax home in a foreign country for any period in which your abode is in the United States. However, your abode is not necessarily in the United States while you are temporarily in the United States. "Abode" has been variously defined as one's home, habitation, residence, domicile, or place of dwelling.

--> the only house I own is in Italy, I intend to return there when the assignment is over. In fact I work in United States with a "non resident" alien status, I am "resident alien" only for tax purposes, because I meet the substantial presence test.

About the Bonafide resident test: before coming to the United States to work here, I lived there for 28 years, I still have italian citizenship.

Regards

Us law does not distinguish between those who are permanent residents and those who pass the substantial presence test. You remain a resident of the US until such time that you lose your residency for whatever reason. As such, and once again assuming that if you derive 80% of your income in the US, then you are spending 80% of your time in the US, you fail both tests to exclude your foreign earned income.