# FEIE 12 month question



## Jamie D (May 10, 2021)

Hello!

From November 2020 - November 2021 I was in the states for 35 days. That counts as my 12 month to qualify for FEIE.

If I go to the U.S. in December 2021, do I just not qualify for the rest of the year? What if in 2022 I don't visit the U.S. and qualify for FEIE including December 2021, how do I reclaim taxes that I end up paying in December?

I am trying to decide if it is worth it to travel during that time or just wait until 2022.


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## Bevdeforges (Nov 16, 2007)

OK - you're taking the FEIE based on the "physical presence" test rather than the bona fide residence test. Basically that means that you are now qualified to take the FEIE for the 2020 tax year - at least for the last two months of that year (i.e. November and December). 

Assuming you arrived overseas for the first time in November 2020, you basically could not claim the FEIE for those two months in 2020 until you reached the end of your 12 month qualifying period. So, either you should have extended your 2020 filing until December 2021 - or if you filed for 2020 without claiming the FEIE, then you can now file an amended return to claim back the taxes on your income for November and December of 2020.

The 2021 tax year starts fresh for you as of January 1, 2021 - and if you want to use the FEIE for that year, you need to evaluate what time you spent in the US for the January 1 to December 31 12 month period. No, it doesn't matter that the qualifying period for those last two months in 2020 overlaps the 2021 tax year. So everything depends on when you visited the US in 2021.

Take a look at IRS Publication 54 - especially Chapter 4 which explains the Foreign Earned Income Exclusion. There is a detailed discussion of how to count the 12 consecutive month period, along with a chart that may explain things a bit more clearly to you.


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## Jamie D (May 10, 2021)

Bevdeforges said:


> OK - you're taking the FEIE based on the "physical presence" test rather than the bona fide residence test. Basically that means that you are now qualified to take the FEIE for the 2020 tax year - at least for the last two months of that year (i.e. November and December).
> 
> Assuming you arrived overseas for the first time in November 2020, you basically could not claim the FEIE for those two months in 2020 until you reached the end of your 12 month qualifying period. So, either you should have extended your 2020 filing until December 2021 - or if you filed for 2020 without claiming the FEIE, then you can now file an amended return to claim back the taxes on your income for November and December of 2020.
> 
> ...


 Thank you for this. That publication is really helpful. If you file an amendment does it cost a lot in CPA fees usually? If you get an extension do you end up with a lot of fees? I think I would be able to claim FEIE for that time but wondering if it will cost me significantly.


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## Bevdeforges (Nov 16, 2007)

Personally, I wouldn't bother with a CPA to file for an extension - and I am a CPA (though I haven't practiced as one in many, many years). It's a fairly standard form and takes no expertise to file.

An amendment depends on how simple or complicated your original return for the year was. If you already used a CPA to file your initial return, it shouldn't cost much more to file the amendment (and actually the CPA or other tax advisor should have suggested it to you in the first place).


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## Jamie D (May 10, 2021)

Bevdeforges said:


> Personally, I wouldn't bother with a CPA to file for an extension - and I am a CPA (though I haven't practiced as one in many, many years). It's a fairly standard form and takes no expertise to file.
> 
> An amendment depends on how simple or complicated your original return for the year was. If you already used a CPA to file your initial return, it shouldn't cost much more to file the amendment (and actually the CPA or other tax advisor should have suggested it to you in the first place).


Thank you for this information. So if you file an extension you don't pay taxes that you owe until the extension is up and the tax return is due? In my case could I file an extension until December 31st 2022 so that I include that month in FEIE? If I submit the tax return and pay taxes at that time do I have penalties?


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## Moulard (Feb 3, 2017)

An extension to file is not an extension to pay.

If you owe money, you should always pay any outstanding amount on time.


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