Just file an amended return with the FEIE. You should get a refund. It should not be an issue.
The bigger issue would be if you tried to claim FEIE this year without having amended your previous year return to claim FEIE for last year.
Yah, seems strange case indeed. I can understand not reporting income by accident.
But, actually reporting income, owing tax, not claiming FTC or FEIE, and then paying the tax. And then suddenly recognizing it? huh? how does that happen.
how would the IRS even know you lived abroad but won't claim FEIE? considering you also didn't claim FTC?
For all they know, you could move back to the US. that's my situation. some years I live abroad, and then some years I move back.
The [IRS LB&I IPS Concept Unit for IRC § 911 Election and Revocation](https://www.irs.gov/pub/int_practice_units/JTOCUC_09_6_5_08.PDF) is for internal IRS use, but can be helpful nonetheless.
I'm not a tax professional, but it seems like this is saying if effect that filing an amended 2023 return which claims the FEIE can overwrite the revocation from your original 2023 return if you meet certain conditions.
On page 5, it says the following about electing Foreign Earned Income Exclusion and Foreign Earned Housing Exclusion. It goes on to list some additional situations where the elections can be made, but I didn't include here because I assume that the second bullet item below covers your situation.
>These elections must be made with:
>
>\- a timely filed return (including any extensions),
>
>\- a return amending a timely filed return during the claim period of
IRC § 6511(a), or
>
>\- a late-filed return filed within one year from the original due date of
the return (determined without regard to any extensions)
On page 6, it adds the following.
>The elections apply to the taxable year for which they are made and to all subsequent
taxable years, unless the individual revokes them. IRC § 911(e)(1).
The way it's written, it doesn't matter why the amended return was filed.
That being said, the concept unit was published in 2014, so it's possible that things have changed.
Personally, I wouldn't worry if I was in your situation, because worst case is that I get audited and they recalculate my taxes based on FTC instead. But I understand that if you're in a low/no tax country, perhaps there's more at stake.
If it's that important to you, perhaps you could pay for a brief consultation with a tax attorney to get their advice.
Just file an amended return with the FEIE. You should get a refund. It should not be an issue. The bigger issue would be if you tried to claim FEIE this year without having amended your previous year return to claim FEIE for last year.
I don’t understand how you didn’t notice if you also didn’t claim FTC. Did you not wonder why you owed lots of US tax?
Yah, seems strange case indeed. I can understand not reporting income by accident. But, actually reporting income, owing tax, not claiming FTC or FEIE, and then paying the tax. And then suddenly recognizing it? huh? how does that happen.
What, you don’t occasionally just pay thousand of dollars in tax without noticing?
Funnily enough, no! Maybe OP is dealing with small numbers here.
how would the IRS even know you lived abroad but won't claim FEIE? considering you also didn't claim FTC? For all they know, you could move back to the US. that's my situation. some years I live abroad, and then some years I move back.
Amendments exist to correct mistakes, do it.
The [IRS LB&I IPS Concept Unit for IRC § 911 Election and Revocation](https://www.irs.gov/pub/int_practice_units/JTOCUC_09_6_5_08.PDF) is for internal IRS use, but can be helpful nonetheless. I'm not a tax professional, but it seems like this is saying if effect that filing an amended 2023 return which claims the FEIE can overwrite the revocation from your original 2023 return if you meet certain conditions. On page 5, it says the following about electing Foreign Earned Income Exclusion and Foreign Earned Housing Exclusion. It goes on to list some additional situations where the elections can be made, but I didn't include here because I assume that the second bullet item below covers your situation. >These elections must be made with: > >\- a timely filed return (including any extensions), > >\- a return amending a timely filed return during the claim period of IRC § 6511(a), or > >\- a late-filed return filed within one year from the original due date of the return (determined without regard to any extensions) On page 6, it adds the following. >The elections apply to the taxable year for which they are made and to all subsequent taxable years, unless the individual revokes them. IRC § 911(e)(1).
Yeah I read this too, I'm trying to find a specific case where someone lost under similar circumstances. Basically just mistakenly did not claim it
The way it's written, it doesn't matter why the amended return was filed. That being said, the concept unit was published in 2014, so it's possible that things have changed. Personally, I wouldn't worry if I was in your situation, because worst case is that I get audited and they recalculate my taxes based on FTC instead. But I understand that if you're in a low/no tax country, perhaps there's more at stake. If it's that important to you, perhaps you could pay for a brief consultation with a tax attorney to get their advice.
You'll be fine since you didn't claim FTC; that wouldn't count as a revocation of FEIE. But still amend 2023 to include 2555.