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January 27, 2021
Question

Redeeming Vacation Pay in the US but Earned within Foreign Earned Income Tax Exclusion

  • January 27, 2021
  • 1 reply
  • 0 views

Hi,

 

If someone is within the Foreign Earned Income Tax Exclusion and accrues paid vacation days while in the foreign country, does redeeming their vacation pay count as income earned within the US if they choose to spend those paid vacation days within the US?

 

Thank you!

    1 reply

    January 27, 2021

    No, vacation pay does not count as income earned within the US.  You would only include income on Form 2555 Part II or III if you were on business in the  US, not on vacation.   Foreign Excludable Income

     

    jchaeAuthor
    January 27, 2021

    You're awesome.  Thank you so much!

     

    Very respectfully,

     

     

    JChae