Moving back to the US after claiming FEIE for years

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movingabroad
Posts: 21
Joined: Wed Jul 08, 2015 8:14 am

Moving back to the US after claiming FEIE for years

Post by movingabroad » Mon Mar 12, 2018 6:43 am

Hey guys,

I have a few quick questions.

Including 2018, I will have been a digital nomad living abroad for 330+ days and claiming the FEIE for the past 3 years. However, in January 2019 I will be moving back to the US with my fiance and living in the US for 3 years, until she is able to get her citizenship. Then we will leave the US again and only return back once a year to maintain her status. I've read some information about how this affects my tax status etc, but I'm not quite sure I understand it.

1) Since I will no longer be using the FEIE while in the US, do I will have to write in a letter in 2019 saying I will no longer be claiming the FEIE?

2) It says I cannot claim the FEIE for 5 years after this? Is that's true? So when I move back abroad after 3 years, I still have to wait another 2 years before I can claim the FEIE again?

3) What about the foreign tax credit? Can I use this for my international stock holdings I have in my taxable account, or can I not claim any foreign tax benefits at all?

Thanks for all the help.

plats
Posts: 401
Joined: Mon Dec 31, 2007 9:46 pm

Re: Moving back to the US after claiming FEIE for years

Post by plats » Mon Mar 12, 2018 4:55 pm

movingabroad wrote:
Mon Mar 12, 2018 6:43 am
Hey guys,

I have a few quick questions.

Including 2018, I will have been a digital nomad living abroad for 330+ days and claiming the FEIE for the past 3 years. However, in January 2019 I will be moving back to the US with my fiance and living in the US for 3 years, until she is able to get her citizenship. Then we will leave the US again and only return back once a year to maintain her status. I've read some information about how this affects my tax status etc, but I'm not quite sure I understand it.

1) Since I will no longer be using the FEIE while in the US, do I will have to write in a letter in 2019 saying I will no longer be claiming the FEIE?

2) It says I cannot claim the FEIE for 5 years after this? Is that's true? So when I move back abroad after 3 years, I still have to wait another 2 years before I can claim the FEIE again?

3) What about the foreign tax credit? Can I use this for my international stock holdings I have in my taxable account, or can I not claim any foreign tax benefits at all?

Thanks for all the help.
My take: Not using FEIE because you have moved back to the USA doesn't mean revoking the exclusion. In 2022, on your 2555, you just list 2018 as the last time you used the exclusion, and "No" to the question of have you ever revoked the exclusion. Therefore:
1. No.
2. No, use it again as soon as you're abroad.
3. Yes, you can use all tax credits.

pasadena
Posts: 194
Joined: Sat Jul 02, 2016 1:23 am

Re: Moving back to the US after claiming FEIE for years

Post by pasadena » Mon Mar 12, 2018 8:48 pm

I'm not answering your question, but I suppose you're planning on getting married and sponsoring your wife for a green card, then after 3 years she will get citizenship. Right ?

Once she is a citizen she doesn't have to do anything to maintain her status, and even before that, returning once a year isn't generally enough to maintain a GC - unless you mean returning every year for 6 months (she should instead get a re-entry permit).

movingabroad
Posts: 21
Joined: Wed Jul 08, 2015 8:14 am

Re: Moving back to the US after claiming FEIE for years

Post by movingabroad » Mon Mar 12, 2018 10:32 pm

pasadena wrote:
Mon Mar 12, 2018 8:48 pm
I'm not answering your question, but I suppose you're planning on getting married and sponsoring your wife for a green card, then after 3 years she will get citizenship. Right ?

Once she is a citizen she doesn't have to do anything to maintain her status, and even before that, returning once a year isn't generally enough to maintain a GC - unless you mean returning every year for 6 months (she should instead get a re-entry permit).
Yes, this was my plan. I'll have to look into the re-entry permit. I'm basically early retired and she will never have to work. I want to live outside the US whenever I feel like it and live in the US whenever I feel like it, and return home to visit family at least once a year.

Can I keep applying for re-entry permit year after year, if i'm mostly living abroad?

Thanks for bringing this to my attention. I thought after she got her citizenship and US passport after 3 years or so, we would have the freedom to come and go as we please, so long as she returned to the US once a year.

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MossySF
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Re: Moving back to the US after claiming FEIE for years

Post by MossySF » Mon Mar 12, 2018 10:45 pm

movingabroad wrote:
Mon Mar 12, 2018 10:32 pm
Thanks for bringing this to my attention. I thought after she got her citizenship and US passport after 3 years or so, we would have the freedom to come and go as we please, so long as she returned to the US once a year.
Once you get your passport, you don't ever have to return.

movingabroad
Posts: 21
Joined: Wed Jul 08, 2015 8:14 am

Re: Moving back to the US after claiming FEIE for years

Post by movingabroad » Mon Mar 12, 2018 10:51 pm

MossySF wrote:
Mon Mar 12, 2018 10:45 pm
movingabroad wrote:
Mon Mar 12, 2018 10:32 pm
Thanks for bringing this to my attention. I thought after she got her citizenship and US passport after 3 years or so, we would have the freedom to come and go as we please, so long as she returned to the US once a year.
Once you get your passport, you don't ever have to return.
We want to return though, but on our own terms. We just don't want to live there permanently. We don't want to live anywhere permanently. We live a nomadic lifestyle.

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MossySF
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Re: Moving back to the US after claiming FEIE for years

Post by MossySF » Mon Mar 12, 2018 10:59 pm

movingabroad wrote:
Mon Mar 12, 2018 10:51 pm
MossySF wrote:
Mon Mar 12, 2018 10:45 pm
Once you get your passport, you don't ever have to return.
We want to return though, but on our own terms. We just don't want to live there permanently. We don't want to live anywhere permanently. We live a nomadic lifestyle.
Not saying you can't return. There's just no time in/out of the country requirement for U.S. Citizens (other than the IRS FEIE time inside the U.S. limit).

plats
Posts: 401
Joined: Mon Dec 31, 2007 9:46 pm

Re: Moving back to the US after claiming FEIE for years

Post by plats » Mon Mar 12, 2018 11:53 pm

MossySF wrote:
Mon Mar 12, 2018 10:59 pm
movingabroad wrote:
Mon Mar 12, 2018 10:51 pm
MossySF wrote:
Mon Mar 12, 2018 10:45 pm
Once you get your passport, you don't ever have to return.
We want to return though, but on our own terms. We just don't want to live there permanently. We don't want to live anywhere permanently. We live a nomadic lifestyle.
Not saying you can't return. There's just no time in/out of the country requirement for U.S. Citizens (other than the IRS FEIE time inside the U.S. limit).
I'd like to add that there is no FEIE limit inside the U.S. if you are a bona fide resident of a foreign country.

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