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qihata
May 10, 2012, 01:32 PM
Wife in US for only 5 days in August, not a green card holder.
Husband work in US for the entire year. Can I file joint return and exclude wife's foreign income by using Form 2555?

AtlantaTaxExpert
May 10, 2012, 01:43 PM
Yes, you should be able to do that, providing she makes UNDER the $91,400 income threshold.

qihata
May 11, 2012, 05:47 AM
Yes, you should be able to do that, providing she makes UNDER the $91,400 income threshold.

Dear AtlantaExpert,

I'm little confused about form 2555. Does it have to be earned income?

I thought that if people elect to file jointly, that means their worldwide income should be taxed and can only use 1116 to get credit, and Form 2555 cannot be used. Also form 2555 is only for green card holder or U.S. citizen. Am I wrong?

Your help is always appreciated. Thanks.

AtlantaTaxExpert
May 11, 2012, 07:24 AM
Form 2555 CAN be used by resident aliens, provided they are resident at BOTH the beginning and the end of the exclusion period.

And, yes, the income MUST be earned income.