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foreign earned income exclusion for part year of living abroad

I'm a US citizen who moved to Australia in March 2007. I earned income in Australia in 2007 after moving here. I'd like to know if I can claim the (pro-rata) foreign income exclusion when I file my 2007 taxes. In particular, I'd like to know if I can claim this exclusion when I file my 2007 taxes this year based on the Physical Presence Test, even though my 330 day period of being outside the US will end in Feb 2008.

The summary of the physical presence test is 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.

So, while I hadn't satisfied this test as of Dec 31, 2007, I will have satisfied it sometime in Feb 2008. So, if I submit my 2007 return after the 330 day period has ended in Feb, can I claim the exclusion then or do I have to amend my 2007 return sometime in the future?

Reply to
Dave Programmer
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Your reading of the rule is correct. You must have met the requirements for the exclusion at the time you file your return. Thus, if you file in February, IRS will disallow the exclusion, on the grounds you do not meet the minimum period. Wait until after March and you will be OK.

Remember, the maximum exclusion must be allocated on the number of days in 2007.

Lanny K. Williams, CPA Nawarat, Williams & Co., Ltd. Income Tax Services for Expatriate Americans

Reply to
L K Williams

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