PapaJoe Posted June 2, 2011 Report Share Posted June 2, 2011 Can someone tell me how to get line 16 of Form 2555 to use a twelve month period of 1/1/10 through 12/31/10 in ATX? I have input on line 18 date in foreign country beginning 1/1/10 to 5/31/10, in US 6/1/10 to 6/11/10, and date in foreign country 6/12/10 to 12/31/10. ATX then insists in showing line 16 as a twelve month period beginning 12/11/09 and ending 12/10/10 which reduces the number of days in the foreign country during tax year 2010. The client was actually in the foreign country from 7/1/09 to present except for a vacation in the US 6/1/10 to 6/11/10. Quote Link to comment Share on other sites More sharing options...
jainen Posted June 12, 2011 Report Share Posted June 12, 2011 >>the number of days in the foreign country during tax year 2010<< That number is not relevant to the calculation. Based on the starting date you entered, ATX is doing it the way described in Pub 54. Quote Link to comment Share on other sites More sharing options...
PapaJoe Posted June 13, 2011 Author Report Share Posted June 13, 2011 >>the number of days in the foreign country during tax year 2010<< That number is not relevant to the calculation. Based on the starting date you entered, ATX is doing it the way described in Pub 54. Where in Pub 54 does it say that if you show date arrived in foreign country is 1/1/10 the physical presence test begins 12/11/09? The start date may not be relevant to the calculation for the 330 day test, but it does impact the number of days in the qualifying period that fall within the 2010 tax year. That in turn affects the percentage of the maximum exclusion available on Part VII, line 38 of Form 2555. Quote Link to comment Share on other sites More sharing options...
jainen Posted June 13, 2011 Report Share Posted June 13, 2011 >>Where in Pub 54 << "How to figure the 12-month period" is explained on page 12. You can choose any period you want, so why use January 1st if it doesn't give the maximum exclusion? Quote Link to comment Share on other sites More sharing options...
PapaJoe Posted June 14, 2011 Author Report Share Posted June 14, 2011 An earlier start date (such as 7/1/09) gives an even earlier start date for calculating the number of days included in the 2010 tax year. Is this an ATX problem or an IRS problem? I don't like to override fields on federal forms. They should calculate correctly. (State forms are another matter.) Quote Link to comment Share on other sites More sharing options...
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