Form 2555 misbehaving in MAX? and Foreign Tax Credit

[Margaret CPA in OH]

I have clients that moved to Switzerland early 2009. They both qualify for the physical presence test but I am baffled by the disparity between the dates I input and what comes up on the form. In input arrival in Switzerland Feb. 1, 2009 and left US Jan. 31, 2009. I had to input made up dates for arrival into US (2005) and departure from Switzerland (Feb. 1, 2010) to get anything to show up on the form at all. But the form shows the test is based on the 12 month period 12.29.08-12.28.09. HUH?

Also, clients did not have Swiss tax withheld from pay but paid hefty amounts this year when return prepared. Since they are cash basis, do they get proportionate credit for that tax paid this year for 2009 income? If not, the US calculated tax is horrific even after the income exclusion. And if they get credit, how is that input? I've been trying to work with 1116, but the input is really a challenge! And I'm not even certain that's the place to put it. Thanks for any guidance.

[Margaret CPA in OH]

Anyone out there have any input? Thanks in advance!

[Gail in Virginia]

On the earned income allocation tab of form 2555, did you input the code for the foreign earned income? On the worksheet for travel data, did you list the days in the US and mark the box for US beside those days - even if they were not business days? Hard to say what could be the problem without seeing the forms.

[Margaret CPA in OH]

Yes, yes, and yes. It's a puzzlement. I will recheck everything later this week with a fresh brain but now am baffled. Sigh...

Thanks for taking a look!