US/Canada Returns

maricami · Post by **maricami** » Fri Mar 09, 2007 3:25 pm

I don't think I can qualify for the PPT either because I moved back to Canada in July and this is less than 330 days in a foreign country. Am I missing something here ? I recall that you mentioned in several earlier posts that on the return year it is more advantageous to file a full year 1040 with form 2555 to exclude foreign wages, but the chances to be able to claim this exclusion are very slim. Maybe I don't understand, do you think I can qualify ?

nelsona · Post by **nelsona** » Fri Mar 09, 2007 5:03 pm

The procedure for filing 2555 for the year of departure is to file extension, such that you file your 2006 return, for example, AFTER you have met the presence test.

So, if you leave july 1, 2006, you would meet the test sometime in June 2007. You file your 2006 return after that date, when you have met the PPT. Your exemption for 2006 would be prorated.

maricami · Post by **maricami** » Fri Mar 09, 2007 9:26 pm

Got it !!! Thanks again Nelsona !