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    rvbpani's Avatar
    rvbpani Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Apr 14, 2007, 08:14 PM
    2555 - Am I eligible to get that exemption ?
    Hi,

    I need help in understanding if I need to go the route of 2555 or should I report the indian income in 10 40 and get tax credit through 1116. Here is the brief summary of my status:

    I work for an indian software company and on L1 visa here on deputation for one of their clients. My tenure at US

    2002 - 2003 - the whole year
    2003 - 2004 - the whole year
    2004 - 2005 - the whole year ( filed my 2005 returns as resident alien)

    2006 Jan 31 - Went back to India
    2006 Feb - 2006 Aug - Indian salary as I was physically present in india.
    2006 Sep - 2006 Dec - again in US on L1 (with my wife who works for the same company and a son)

    I believe I have to file as Resident alien ( substantial presence test) meaning I have to report all sources of income including the income earned in Indian (between Feb and Aug). But I also noticed that you can get foreign income exempt by filing 2555 ( if the income is less that 80 k). Will I be able to do that with Resident alien status (nationality indian) ? Please advise.

    Thanks
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Apr 20, 2007, 11:07 AM
    You do NOT qualify for Form 2555.

    File Form 1116 instead.
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