Foreign Earned Income & Foreign Earned Income Exclusion
Question: I am a nonresident alien. Can I elect the foreign earned income exclusion if I meet the bona fide resident test or physical presence test? If yes, what is the tax form for making this election?
Answer:
Nonresident aliens do not qualify for the foreign earned income exclusion.
- You must be either a U.S. citizen or resident alien of the United States, live and work abroad, and meet certain other qualifications to exclude a specific amount of your foreign earned income.
- If you are the nonresident alien spouse of a U.S. citizen or resident alien, you can elect to be treated as a U.S. resident in order to file a joint return. In this case, you can take the foreign earned income exclusion if you are otherwise qualified.
Note: A nonresident alien is generally not subject to U.S. tax on compensation for services performed outside the United States. Even if a nonresident alien was subject to the special dual-status rules, he or she would not be subject to U.S. tax on his or her foreign earned income during the nonresidency part of the tax year.
Additional Information:
Category: U.S. Aliens and Citizens Living Abroad
Subcategory: Foreign Earned Income & Foreign Earned Income Exclusion
