Irs Publication 54 - Tax Guide For U.s. Citizens And Resident Aliens Abroad - 2008 Page 12
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44Figure 4–A. Can I Claim Either Exclusion or the Deduction?
Start Here
Yes
Yes
No
No
Do you have foreign
Is your tax home in a
Are you a U.S. resident
Are you a U.S. citizen?
earned income?
foreign country?
alien?
No
No
Yes
Yes
Were you a bona fide
Are you a citizen or
resident of a foreign
national of a country
Yes
country or countries
with which the United
for an uninterrupted
States has an income
period that includes an
tax treaty in effect?
entire tax year?
No
Yes
No
You CAN claim the
foreign earned income
exclusion and the
foreign housing
exclusion or the foreign
*
housing deduction.
Were you physically
present in a foreign
Yes
country or countries for
at least 330 full days
during any period of 12
consecutive months?
No
You CANNOT claim the foreign earned income exclusion, the
foreign housing exclusion, or the foreign housing deduction.
*
Foreign housing exclusion applies only to employees. Foreign housing deduction applies only to the self-employed.
you can exclude or deduct certain foreign hous-
b. A U.S. resident alien who is a citizen or
you must leave a foreign country because of
ing amounts. See Foreign Earned Income Ex-
national of a country with which the
war, civil unrest, or similar adverse conditions in
United States has an income tax treaty
clusion and Foreign Housing Exclusion and
that country. This is fully explained under Waiver
in effect and who is a bona fide resident
Deduction, later.
of Time Requirements, later.
of a foreign country or countries for an
You may also be entitled to exclude from
See Figure 4-A and information on the fol-
uninterrupted period that includes an
income the value of meals and lodging provided
lowing pages to determine if you are eligible to
entire tax year, or
to you by your employer. See Exclusion of Meals
claim either exclusion or the deduction.
and Lodging, later.
c. A U.S. citizen or a U.S. resident alien
who is physically present in a foreign
Tax Home in
country or countries for at least 330 full
Foreign Country
days during any period of 12 consecu-
Requirements
tive months.
To qualify for the foreign earned income exclu-
sion, the foreign housing exclusion, or the for-
See Publication 519 to find out if you are a
To claim the foreign earned income exclusion,
eign housing deduction, your tax home must be
U.S. resident alien for tax purposes and whether
the foreign housing exclusion, or the foreign
in a foreign country throughout your period of
you keep that alien status when you temporarily
housing deduction, you must meet all three of
bona fide residence or physical presence
work abroad.
the following requirements.
abroad. Bona fide residence and physical pres-
If you are a nonresident alien married to a
U.S. citizen or resident alien, and both you and
ence are explained later.
1. Your tax home must be in a foreign coun-
your spouse choose to treat you as a resident
try.
alien, you are a resident alien for tax purposes.
2. You must have foreign earned income.
Tax Home
For information on making the choice, see the
discussion in chapter 1 under Nonresident Alien
3. You must be either:
Your tax home is the general area of your main
Spouse Treated as a Resident.
place of business, employment, or post of duty,
a. A U.S. citizen who is a bona fide resi-
regardless of where you maintain your family
dent of a foreign country or countries for
Waiver of minimum time requirements. The
an uninterrupted period that includes an
home. Your tax home is the place where you are
minimum time requirements for bona fide resi-
entire tax year,
dence and physical presence can be waived if
permanently or indefinitely engaged to work as
Chapter 4 Foreign Earned Income and Housing: Exclusion – Deduction
Page 12
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