A client spent the last 83 days of 2012 in the Netherlands on a marketing consulting job. She has filed a Dutch tax return. It appears that Form 2555 for foreign earned income exclusion is not applicable to her as the instructions say it is for a full year non-resident only. Is this the case?

ANSWER

The BIDaWIZ Team's Answer:

Since she doesn't meet the bonafide resident test per IRS Form 2555 (living at least 330 days in the Netherlands), she cannot claim the foreign income exclusion or any related tax credits or deductions. Please also note that there is a tax treaty in place with the US and Netherlands to avoid double taxation.