Revoking the foreign earned income exclusion

May 16, 2009 3 Replies

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Hello. I'm eligible for the foreign earned income exclusion for my 2008 taxes (based on the physical presence test). I have changed jobs for 2009 and will not be eligible for the foreign earned income exclusion for 2009 because I will be traveling back to the US for long periods of time, and also will not qualify under the bona fide resident test for 2009. If I claim the foreign earned income exclusion for 2008, but not for 2009, is that automatically considered revoking it? I'd like to claim the foreign earned income exclusion again for 2010, but my understanding is that if you revoke it, you can't use it again for 5 years. I do not plan to write the IRS to revoke it (which is they're explanation of revoking), but I wonder if just NOT claiming it for 2009 will prohibit me from claiming it in 2010 also? Thanks!


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If you're not eligible for FEIE then you are not eligible and cannot claim. That is not the same as revoking.

By not claiming the FEIE, you have simply elected not to claim. (In your case, because you are not eligible.) Revoking the election would involve claiming, then revoking.

Why are you choosing to make the FEIE? Generally, it is better to make a FTC rather than a FEIE. Unless the foreign country's tax rate is lower than the USA, which is rare.

leebop had written this in response to

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: Thanks for the help. The income is from UAE, which has no tax.

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