What if I move mid-year — can I still claim FEIE?

Yes, you can claim the FEIE if you move abroad mid-year, but the exclusion amount will be prorated based on the number of qualifying days you spend in a foreign country. Additionally, you need to meet either the Physical Presence Test or the Bona Fide Residence Test, which may require planning.

For the Physical Presence Test, remember that it uses a rolling 12-month period, not the calendar year. If you move abroad on June 1, 2024, you would need to be physically present in a foreign country for 330 days within any 12-month period. You could not meet this test by December 31, 2024 (only about 214 days). However, you could meet it by selecting the 12-month period of June 1, 2024 through May 31, 2025 — assuming you accumulate 330 qualifying days in that window.

In this scenario, you would file your 2024 return on extension and wait until you have met the 330-day requirement before filing. Alternatively, you could file without the FEIE by the deadline and then amend your return once you qualify.

For the Bona Fide Residence Test, you cannot use it in your first partial year abroad because it requires residence for an uninterrupted period that includes an entire tax year (January 1 through December 31). If you moved abroad in June 2024, the earliest you could qualify under this test is for the 2025 tax year.

The prorated FEIE amount is calculated as: (Number of qualifying days in the tax year / Total days in the year) x Maximum FEIE amount. So if you have 214 qualifying days in 2024: (214 / 366) x $126,500 = approximately $73,935.

Your income must also be allocated between US and foreign sources. Only income earned while working abroad in a foreign country qualifies for the FEIE. Income earned while working in the US before your move is not eligible, even if it is paid after you relocate.