# Physical Presence Test Over Multiple Years



## cwressler (Jan 30, 2014)

I'm hoping someone has some experience with how to handle overlapping '330-day periods' on Form 2555. I've read through the forum and the IRS publications and can't find anything that addresses it.

I established my tax home in the UAE in June 2012. I spent 360 consecutive days in the UAE and in June 2013 I returned to the USA for 55 days. In August on 2013 I returned to the UAE and will be here for at least another 360 days.

For the 2012 tax year I filed an amended return and got the prorated amount for the time I spent in the UAE last year. 

My question concerns 2013. I don't qualify as a Bona Fide Resident since I returned to the USA but I will meet the physical presence test for two overlapping 365-day periods which will include all of 2013 if I pick the periods correctly. 

So how do I fill out a Form 2555 to cover 2013? I can claim one 365-day period for the first half of the year or one the other half but I don't see how to claim both periods in one tax year? Can I file two form 2555's in one tax year?

Any help would be GREATLY appreciated.


----------



## Bevdeforges (Nov 16, 2007)

Not sure, but I don't think you can claim the tag ends of two stints overseas like that. Unless - you file for 2013, taking the FEIE for the first part of the year, based on your prior stay abroad.

After you have "re-qualified" (i.e. on the one year anniversary of your return to your overseas post), file an amendment to your 1040, claiming the second period's FEIE (and a refund of whatever you paid with your initial return). Not sure how that will fly, but it's worth a try.

But, in any event, you can't claim the FEIE until you have actually qualified for it - i.e. you have been out of the country for a full 12 consecutive months.

Or, I suppose you could file for extensions until you requalify and then file the whole thing together, just lumping the two periods of "physical presence" together (with the 55 day absence) with the appropriate explanation.
Cheers,
Bev


----------



## DavidMcKeegan (Aug 27, 2012)

I believe in a situation like this it is either one period or another. You can't file two 2555's, nor can you use two different time periods within the same year.

To qualify it has to be 330 days abroad in any 365 day period. Thus my suggestion would be to use June 2012-June 2013 (you may be able to use Jul-Jul if you were abroad for 330 days during that time-that would be a better option) as your qualifying time for the FEIE.

You will then receive a prorated exclusion, but it is better than nothing. If you use June-June as your "year" then you will get 6/12 of the exclusion amount. However if you can make the July-July "year", you will get 7/12ths of the FEIE amount (roughly 56,875).

Hope this helps!


----------

