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Hi all.
I am preparing to file my tax for 2017.*
Background:*
I recently became a US Permanent Resident in 2016.*
Activated my GC by entering the USA back in 2016 (towards the end of 2016)
*
Then left the USA.
Entered the USA again in 2017 (towards the end of the year 2017).*
All my income were derived from out of the USA.
Days in the USA:*
2016 (8 days )
2017 (50 days) - around 9 months after my*exit in 2016
I have been approved of my re-entry permit that covers end of 2017-2019 (though i have not received the physical permit but case check shows it had been approved).
For 2016, i filed with Foreign Income Exclusion 2555-EZ (though i had not checked the status of the filing, but it was clear cut that I was qualified for the exclusion).
Now i want to file my tax in 2017 and I got confused by the "Physical Presence Test" considering in 2017, i stayed for 50 days in the USA.
IRS link: https://www.irs.gov/help/ita/can-i-e...oreign-country
IRS guidance:*
Physical Presence Test
Note: For the question below there are four rules you should know when figuring the 12-month period.
1) Your 12-month period can begin with any day of the month. It ends the day before the same calendar day, 12 months later.
2) Your 12-month period must be made up of consecutive months. Any 12-month period can be used if the 330 days in a foreign country fall within that period.
3) You do not have to begin your 12-month period with your first full day in a foreign country or end it with the day you leave. You can choose the 12-month period that gives you the greatest exclusion.
4) In determining whether the 12-month period falls within a longer stay in the foreign country, 12-month periods can overlap one another.
Were you physically present in a foreign country or countries for at least 330 full days during a period of 12 consecutive months STARTING OR ENDING ON ANY DAY WITHIN 2017? (my emphasis)
MY QUESTION: In my case, to get* no less than 330 days, I will have to start the counting of the days from a period in 2016 that covers the 8 days I was in the USA, and the period ends in BEFORE my stay in the USA in 2017 (so that the total of the stay would just be 8 days).
So for example, I entered the USA in 2016 in November, and I entered the USA again in 2017 in September, so my period would be from September 2016 - August 2017 - which shows I was in the USA for just 8 days).
Is this what the guide wanted to say? (just checking if my understanding is correct - mainly point 3 and 4 and I am unsure what IRS meant by period overlapping one another).
The IRS foreign income exclusion guide also had other questions like abode in the USA (which i would answer as NO, - and a bit concerned of this somehow would jeopardise my LPR status)
Thoughts?
I am preparing to file my tax for 2017.*
Background:*
I recently became a US Permanent Resident in 2016.*
Activated my GC by entering the USA back in 2016 (towards the end of 2016)
*
Then left the USA.
Entered the USA again in 2017 (towards the end of the year 2017).*
All my income were derived from out of the USA.
Days in the USA:*
2016 (8 days )
2017 (50 days) - around 9 months after my*exit in 2016
I have been approved of my re-entry permit that covers end of 2017-2019 (though i have not received the physical permit but case check shows it had been approved).
For 2016, i filed with Foreign Income Exclusion 2555-EZ (though i had not checked the status of the filing, but it was clear cut that I was qualified for the exclusion).
Now i want to file my tax in 2017 and I got confused by the "Physical Presence Test" considering in 2017, i stayed for 50 days in the USA.
IRS link: https://www.irs.gov/help/ita/can-i-e...oreign-country
IRS guidance:*
Physical Presence Test
Note: For the question below there are four rules you should know when figuring the 12-month period.
1) Your 12-month period can begin with any day of the month. It ends the day before the same calendar day, 12 months later.
2) Your 12-month period must be made up of consecutive months. Any 12-month period can be used if the 330 days in a foreign country fall within that period.
3) You do not have to begin your 12-month period with your first full day in a foreign country or end it with the day you leave. You can choose the 12-month period that gives you the greatest exclusion.
4) In determining whether the 12-month period falls within a longer stay in the foreign country, 12-month periods can overlap one another.
Were you physically present in a foreign country or countries for at least 330 full days during a period of 12 consecutive months STARTING OR ENDING ON ANY DAY WITHIN 2017? (my emphasis)
MY QUESTION: In my case, to get* no less than 330 days, I will have to start the counting of the days from a period in 2016 that covers the 8 days I was in the USA, and the period ends in BEFORE my stay in the USA in 2017 (so that the total of the stay would just be 8 days).
So for example, I entered the USA in 2016 in November, and I entered the USA again in 2017 in September, so my period would be from September 2016 - August 2017 - which shows I was in the USA for just 8 days).
Is this what the guide wanted to say? (just checking if my understanding is correct - mainly point 3 and 4 and I am unsure what IRS meant by period overlapping one another).
The IRS foreign income exclusion guide also had other questions like abode in the USA (which i would answer as NO, - and a bit concerned of this somehow would jeopardise my LPR status)
Thoughts?
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