You won't actually do 4 full returns
. You'll still only do the actual return one time per year (due by april 15th of the year following the tax year in question).
You use just send in this form
which is really just a payment voucher to send in 1/4 of what you think your yearly tax will be.
No, the Foreign earned income exclusion
is just a form: Form 2555, Foreign Earned Income
that you'll use as an attachment to your tax return at the end of the year, which, when you work through it, will arrive at a number that you will carry to line 21 of your actual tax return (as a negative number that reduces your taxable income
dollar for dollar )
And the deduction that I think he must be referencing is the deduction for taxes paid to a foreign government
(and there ARE two choices there, but as you'll see if you read this, you can choose a different one each year depending on what is most adventageous: http://www.irs.gov/Individuals/International-Taxpayers/Foreign-Tax-Credit---Choosing-To-Take-Credit-or-Deduction
From there, the very first paragraph says the following: "You can choose each tax year to take the amount of any qualified foreign taxes paid or accrued during the year as a foreign tax credit or as an itemized deduction. You can change your choice for each year's taxes."
Now, what he MAY have said is that you can't take the forrign tax credit (or the deduction) AND the foreign earned income exclusion together in the same year.
That would make more sense.
Take this, along with the linked information, (everything will stay here and the links will stay active once you rate, for as long as you need it) to your accountant and I bet you'll get on the same page.
Hope this helps