Foreign Earned Income Exclusion

[Dick Adams]

Correct me if I am operating under a misconception (and
I am certain someone will).

Given one's income is below the threshold of the FEIE,
is this not a simple fill-in-the-blanks return? If so,
what is the problem with filing it?

Dick

 

[D. Stussy]

Correct me if I am operating under a misconception (and
I am certain someone will).

Given one's income is below the threshold of the FEIE,
is this not a simple fill-in-the-blanks return? If so,
what is the problem with filing it?

Maybe if enough of that income is EARNED income, with the
personal exemption and standard deduction being enough to
absorb the non-earned income.... However, you didn't specify
that and I try to avoid assumptions...

 

[L K Williams]

Correct me if I am operating under a misconception (and
I am certain someone will).

Given one's income is below the threshold of the FEIE,
is this not a simple fill-in-the-blanks return? If so,
what is the problem with filing it?

Maybe, not. Although the rules for the exclusion appear to
be straightforward, there are often complications. For
example, if the exclusion period is less that the full tax
year. There can be unexpected complications in computing
the number of qualifying days under the physical presence
test. Even the bona fide residence test can be complicated.