Foreign Income exclusion

[Boma Osime]

My client is a first time green card holder who works in his country of Citizenship, he is married and filing jointly with his wife. They have 3 children. The first 2 children graduated from college here in the US last year. The wife lives with son in an European country different from where the husband works. Son goes to a special school and is a minor so wife had to live with him in a second foreign country but did not work. Dad goes to visit them during his vacation. Primary taxpayer works with a US multinational but the localized branch in his country. This is his first time filing taxes and is claiming foreign earned income exclusion. He doesn't qualify for the bona fide residency test. He and the family got their green card in May 2021.

I am filing part year income and claiming the income exclusion for the part year. He qualifies for the physical presence test since his tax home is outside of the US and he lived and worked in his country of citizenship for the entire year. Does he qualify for the second home housing deduction?

[Dude]

You may want to look into whether a tax treaty between his country of citizenship and the US exists (and specifically does not recognize dual citizenship) as these can override the green card and allow a NR filing. otherwise....is he over the threshold for FACTA requirements FIN CEN 114 and or form 8938? Sounds like he will at the least have to file an FBAR. I have read that you could claim NR status if your country of citizenship has a tax treaty but you must also file form 8833 https://www.irs.gov/individuals/inte...s/tax-treaties https://www.irs.gov/forms-pubs/about-form-8833

HOWEVER I have also read that filing NR while a green card holder can be considered abandonment of your residency status. Client should be clear about the choices.