r2i forum

Can a green card holder file Form 2555 (Foreign earned income exclusion) and either use Bona fide resident test for the exclusion (which shows that your intention to stay in the foreign country for indefinite stay and not a temporary stay) or Physical Presence test (which requires you to stay at least 330 days in the foreign country) ?
Will that jeopardize the green card ?
Thank you.

Hi Fpvt2,

Filing Form 2555 would not jeopardize your Green Card, you can file the Foreign Earned Income Exclusion Form, i.e. Form 2555, if you meet the conditions mentioned in the form. Alternatively you can also opt for Form 1116 for Foreign Tax Credit.

We assist in both USA and India Tax Filing Services from Pune. You can email us complete details on [email protected] or visit us at www.kkassociate.com.

Regards,
KKA

Thanks for the quick reply.
I understand Green card holder needs to spend most of his/her time in the US, but if the green card holder file Form 2555, doesn't it show that he/she spends most of his time outside the US, or worse with the Bona fide resident test doesn't he/she show his/her intention to stay in the foreign country for indefinite stay and not a temporary stay ?

Hi fpvt2,

As mentioned earlier subject to compliance of rules you can take the Foreign Earned Income Exclusion, otherwise you can opt for the foreign tax credit and avoid paying taxes in the US on the same income which already taxed in the source country.

I hope that helps.

Regards,
KKA