Foreign Earned Income Question

[Kram BergGold]

My client and I elected not to exclude 10k of 2009 foreign earned income to get the child tax credit and the Making Work Pay Credit. She just got a Trust K-1 with $50k of Cap Gain which makes that choice a poor one as her income is now too high to get the credits.
As we filed an extension, can we go back and claim the foreign earned income exclusion on the amended return we are filing to report the additional income?
I know this election can't be undone without IRS appraoval but I would think that while the return is still on extenstion that we can chasnge our mind.

[WhiteOleander]

I'm confused. If you have the return on extension, why are you amending it?

[appelman]

Follow this link:

http://www.irs.gov/businesses/article/0,,id=182017,00.html

In particular:

"Timing of election: Generally, a qualifying individual’s initial choice of the foreign earned income exclusion must be made with one of the following income tax returns:

A return filed by the due date (including any extensions),
A return amending a timely-filed return. Amended returns generally must be filed by the later of 3 years after the filing date of the original return or 2 years after the tax is paid, or
A return filed within 1 year from the original due date of the return (determined without regard to any extensions)"