Client is wondering why their income (all earned while living out of the country) is not fully excluded. I filed form 2555 and only part of the income (according to the form) is excluded. Client moved back to the US mid way through the year, but earned no income in the US. Am I missing anything?
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I often wonder why I have to pay tax at all. I mean how come I don't get an exclusion for being me?
Obviously he has income above the exclusion limit. The exclusion limit is prorated based on days in 2008 in the qualifying period. If he'd rather, he could do a foreign tax credit instead of the exclusion, but he's probably paying no tax there either (check it out anyway though). No tax there, wants to pay no tax here. Complains because he has to pay taxes on some of his income. Maybe you should remind him that he's getting a deal in that he only has to pay tax on some of his income instead of all like most people.
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