Must both spouses claim 2555

Yann · Post by **Yann** » Thu Dec 13, 2012 1:48 am

We are married filing jointly. We both have been in Canada for many years. We both have been claiming 2555 on returns.

Now I want to revoke my spouse's FEIE in order to get the child tax credit. Can we do? I will still claim 2555 but not her. All income is CDN.

thanks

JGCA · Post by **JGCA** » Thu Dec 13, 2012 9:54 am

nelsona · Post by **nelsona** » Thu Dec 13, 2012 11:04 am

Actually, no.

Since 2555 is filed independantly for each taxpayer, it is quite permissable for one spouse to exclude their wages, and the other to use foreign tax credit.

From IRS PUB 54:

"If both you and your spouse work abroad and each of you meets either the bona fide residence test or the physical presence test, you can each choose the foreign earned income exclusion."

Notice the words "you can each". This means it is a choice for both of you.

I don't no why JG would give an unsubstantiated and wrong answer like that, perhaps he can explain.

nelsona · Post by **nelsona** » Thu Dec 13, 2012 11:27 am

Yikes. Sorry. Did not read properly.

JG (and I) are coorect. Yes, you can individually revoke 2555 and no, you do not have to both file 2555 when filing MFJ.

Je m'excuse, JG.

Yann · Post by **Yann** » Thu Dec 13, 2012 2:09 pm

Thank you both.