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F 2555 only giving partial foreign income exclusion


David

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TP worked for US employer in Canada for 3 years. He left CA on 5/25/15 and transferred to his same employer in the US.

I completed the 2555 Foreign Earned Income Alloc Wks and reported all of his $108K Canada wages as foreign wages. Since his foreign wages exceed the $100,800 income exclusion limit, shouldn't the exclusion limit amount be excluded?

Part VII of F 2555 is prorating this amount by 145/365. The 145 days is from Jan 1 - May 25.

If all of his wages were earned within the 145 days, why is the program prorating the exclusion amount? I checked my entries and they appear correct. Did I miss something that caused the program to prorate the exclusion amount? Or is this how it should be done?

BTW I am using ProSeries.

Thanks.

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