Assuming that you meet the physical presence test of being physically present for 330 days in a 12 month period, you may be able to exclude some or all of the income under the Foreign Earned Income Credit. The 330 days do not need to be in one tax year. If it spans two years, the amount that can be excluded must be pro-rated based on the number of days in the tax year you were physically present. For example, assume that from September 1, 2014 to August 31, 2015 you were physically present in a foreign country. You qualify for a portion of both years. For 2015 you can exclude 243/365 x $100,800. the 243 is the number of days in 2015 you were physically present and the $100,800 it the maximum exemption for 2015. Also, if you are a civilian employee of the U S Government you cannot take the exclusion.