Figure 4-A. Can I Claim the Exclusion or Deduction?
Summary: This flowchart is used to determine if the taxpayer can claim any foreign exclusions or deductions.
Start
This is the starting of the flowchart.
Decision (1)
Do you have foreign earned income?
| IF Yes Continue To Decision (2) |
| IF No Continue To Process (a) |
Decision (2)
Is your tax home in a foreign country?
| IF Yes Continue To Decision (3) |
| IF No Continue To Process (a) |
Decision (3)
Are you a United States citizen?
| IF Yes Continue To Decision (6) |
| IF No Continue To Decision (4) |
Decision (4)
Are you a United States resident alien?
| IF Yes Continue To Decision (5) |
| IF No Continue To Process (a) |
Decision (5)
Are you a citizen or national of a country with which the United States has an income tax treaty in effect?
| IF Yes Continue To Decision (6) |
| IF No Continue To Decision (7) |
Decision (6)
Were you a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year?
| IF Yes Continue To Process (b) |
| IF No Continue To Decision (7) |
Decision (7)
Were you physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive
months?
| IF Yes Continue To Process (b) |
| IF No Continue To Process (a) |
Process (a)
You CANNOT claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction.
Process (b)
You CAN claim the foreign earned income exclusion and the foreign housing exclusion or the foreign housing deduction.
Footnote: Foreign housing exclusion applies only to employees. Foreign housing deduction applies only to the self-employed.
End
This is the ending of the flowchart.
