Elise:

I just returned to the United States after working in Portugal for a year and I'm not sure I qualify for the foreign earned income exclusion on my tax return. Can you help me with this?

You:

Certainly. Why don't you tell me about your employment period over in Portugal?

Elise:

Well, I lived in Lisbon with my husband and two children beginning in November 2023. The job assignment was indefinite. I knew that my company was going to send me to another post.

You:

Did you set up residence in Lisbon?

Elise:

Yes, with my employer's help, we established immediate residency there. I'm concerned because I read in the 1040 instructions booklet that to be considered a resident you have to live in a foreign country for a full year, uninterrupted. I actually had to come back to the United States to meet with my employer.

You:

How long were you in the United States?

Elise:

Well, I was here from April 2024 to May 2024. My family stayed in Lisbon.

You:

And when did you come back permanently to the United States?

Elise:

Well, my company transferred me back on December 13, 2024, much sooner than I expected.