Foreign Income Exclusion

[KBTS]

I really need some help here - this is the first time I have ever tried doing a Form 2555. I am ready to give up on this return and call the client Monday to tell them I just cannot figure out the foreign income exclusion.

Client worked for a US contractor in the Middle East last year. He worked overseas from 2/20/09 through 3/19/10, with the exception of two trips home to the US from 6/9/09 - 6/23/09 and 12/28/09 -1/12/10.

I used the example on page 20 of Publication 54 to try to figure out the physical presence test and come up with how many days, but I am not sure I did it correctly. I come up with the 330 days ending on 2/15/10 which means the 12 month period would be 2/16/09 - 2/15/10. This would be a total of 319 days in 2009 that fall within this period, or an exclusion percent of .874% (319/365).

My next question is what goes in Part III of Form 2555 (can't use 2555-EZ because earnings were too high)? Would the 12 month period in question 16 be 2/16/09-2/15/10? And what about question 18 - what dates go in there and do I put in the days back in the US?

Sorry for all the questions, but it is late in the season and I am completely confused about this.

[BP.]

I had a couple of guys working as contractors in Iraq a few years ago, so I pulled a file to see what the prepared 2555 looked like. (Don't give up on it!)

I didn't confirm your count to see which 12 mo period your 330 days occured in, but yes, that period that you've established goes on line 16.

In my cases, I didn't need to use line 18- no travel. But I believe the two trips back to US would go there.

Hope that helps just a little bit. At least your question will stay on the first page of the board, and maybe someone else can jump in.

[KBTS]

Thanks for the encouragement. Can anyone else offer some advice?