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You cannot file from August to August. Filing due dates
are usually April 15th, or October 15th, unless serving in a combat zone. You mentioning the 330 days, sounds as if your husband is referring to the Foreign Earned Income
Exclusion, which government
employees and members of the military are not eligible for. SEE BELOW:
Refer To Foreign Sourced Income
Certain taxpayers can exclude income earned in foreign countries. For 2010, this exclusion amount can be as much as $91,500. However, the foreign earned income exclusion does not apply to the wages and salaries of military and civilian employees of the U.S. Government.
Employees of the U.S. Government include those who work at United States
Armed Forces exchanges, commissioned and noncommissioned officers' messes, Armed Forces motion picture services, and similar personnel. Other foreign income earned by military personnel or their spouses may be eligible for the foreign earned income exclusion. For more information on the exclusion, see Publication 54. On the other hand, it does sound like he means to refer to the Combat Zone Exclusion. SEE BELOW:
Amount of Exclusion
If you are an enlisted member, warrant officer, or commissioned warrant officer and you serve in a combat zone during any part of a month, you can exclude all of your military pay for that month. It should not be included in the wages reported on your Form W-2
. You also can exclude military pay earned while you are hospitalized as a result of wounds, disease, or injury incurred in the combat zone. If you are hospitalized, you cannot exclude any military pay received for any month of service that begins more than 2 years after the end of combat activities in the combat zone. Your hospitalization does not have to be in the combat zone.
If you are a commissioned officer (other than a commissioned warrant officer), you can exclude your pay according to the rules
just discussed. However, the amount of your exclusion is limited to the highest rate
of enlisted pay (plus imminent danger/hostile fire pay you received) for each month during any part of which you served in a combat zone or were hospitalized as a result of your service there.
The combat zone exclusion is not based on being in a foreign country for 330 days. Since he was in a combat zone from Aug. 2010 to Aug. 2011, you would claim the exclusion from Aug-Dec. 2010 on the 2010 tax return
, and for tax year 2011, you would claim the exclusion for Jan. - August. You will need to amend the 2010 tax return to exclude his income from Aug.-Dec. only.