# Explain this rule for Foreign Earned Income Exclusion



## compostelle (Jun 1, 2012)

Hi Everyone,
I signed up to receive email newsletters from a Phil Hodgen ([email protected]), a lawyer in California. He sends out monthly newsletters (he calls them Jell-o Shots)
In his August newsletter, he informs americans that he will be hosting a webinar and one of the points he is going to clairfy in the webinar (August 15, 2013) is:

*The foreign earned income exclusion*. (Quote) I would guess that a majority of people abroad think that if you earn below the threshold amount, you don’t have to file a U.S. tax return. No so. You have to file to claim the exclusion.

This is news to me, and I was hoping someone (Bev?) could shed some light on this.
I have always been below the threshold, so have never filed, and also had regular contact with the IRS to try and keep on top of things. Does anyone understand what he means or is it all just #$^!

Thanks for any help or ideas!


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## The_Okie (Jul 31, 2013)

Well I specifically wrote my uncle back in the States over whether I had to file or not and he said I'm not required to if I make less than the minimum. He was Oklahoma's top CPA before he became a CFO with three other companies, so he knows his tax stuff.


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## compostelle (Jun 1, 2012)

Thanks Okie for that! 
It is good news that your Uncle is know about this, especially if he has family overseas, that must be a bit help for you in trying to navigate the maze of the IRS. ; but where does this lawyer in California get his info. I have searched the IRS website, and found nothing on this. 
I was wondering if there are different rules though for americans living abroad, which would make no sense, but there seem to be often different rules for US Persons Abroad. 
I shall wait and see if I get any response from him or his office, but for now I will rest easy!


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## The_Okie (Jul 31, 2013)

Perhaps it has to do with what state you live in? You can also write the IRS directly and they'll give you a generic answer, but nonetheless a yes or no answer as to whether you must file or not.


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## compostelle (Jun 1, 2012)

Here is the answer I received from the lawyers office:
(quote) There's a difference between being below the 2555 threshold and being below the filing threshold. If you are making less than about $10,000 in income, you do not have a filing requirement.

It seems the confusion was with the filing requirements of a the 2555 threshold and the filing requirement of earned income, on my part. Thanks though for your input.


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## The_Okie (Jul 31, 2013)

Ah okay. I assumed you were like me and still searching for work. (There's not much work to be found when you don't have a car and you live out in a cow village, hehe) At least you got that all cleared up, though.


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