Form 2555-EZ

[Dan]

Question: What does this uninterrupted period including entire tax year mean? Say for example you are in a foreign country all of 2007 except 42 days. 7 days from March 1 through March 7; 14 days from May 1 through May 14; 21 days from Sept. 16 through Oct. 7.

1. Question 1: Since you are in the U.S. for the above dates does this mean year 2007 was interrupted?

2. Question 2: What does it mean by temporary trips back to the U.S.?

[Gail in Virginia]

I am not an expert on this, but I think you have to be in the foreign country or countries for 330 full days in a 12 month period to be considered to meet the physical presence test. In this example, since there are 365 days in a year, and you were in the US 42 of them, you were only in the other country for 323 days, which is not enough.

[Dan]

I am not an expert on this, but I think you have to be in the foreign country or countries for 330 full days in a 12 month period to be considered to meet the physical presence test. In this example, since there are 365 days in a year, and you were in the US 42 of them, you were only in the other country for 323 days, which is not enough.

Thanks for responding!!!

Question 1: 2008 Tax return: You are in the U.S. June 5, 2008; If you work backwards you have June 4, 2008 to June 5, 2007 or changing it around June 5, 2007 through June 4, 2008. The June 5, 2007 through June 5, 2008 covers a 12-month period. From the previous question: you were in the U.S. Sept. 16 to Oct. 7, 2007 or 21 days. 365 days-21 days = 344 days. Can you use the physical presence test in 2008?

Question 2: Can you work backwards as I have done in Question 1 to get my 330 days?

[joans]

That is correct. My husband is working in Iraq right now and he has to be out of country for 330 days out of 365 days so we are watching how many days he is home very closely or his wages are taxable. He left Sept 21 and has been home for 14 days in Jan/Feb and will be home again for 14 days in May/June and his term is up on Sept 21, so he will probably be home beginning of Oct to claim the exemption of taxes on his wages. Sorry, but for 42 days, wages are taxable:( I had to file extension because of the 2555 form. I still have to figure out how to fill it out:)

Sara