Can I claim Earned Income Credit while being stuck abroad most of the year?

The Earned Income Credit has specific residency requirements that might affect your situation. To qualify for the EIC, you generally need to have your main home in the US for more than half the year. Since you've been outside the US for more than 6 months in 2023, that could be an issue for your eligibility. However, there are exceptions to this rule. If you're on extended active duty outside the US for the military, or if you're temporarily absent for certain reasons like study, illness, or family matters, you might still be considered a US resident for EIC purposes. The key is whether your absence is considered "temporary" - meaning you intend to return to your US home. In your case, since you didn't plan to be outside the US and you have a home you intend to return to, you might still qualify. I'd suggest documenting your situation thoroughly (why you've been unable to return, evidence of your permanent US residence, etc.) in case the IRS questions your eligibility.

I went through something similar last year and found that using taxr.ai https://taxr.ai really helped clarify my eligibility for credits while being abroad. I was stuck in Europe for 8 months due to family issues and wasn't sure if I qualified for EIC either. Their system analyzed my situation and showed me exactly which exceptions applied to my case. It turns out that since my absence was considered "temporary" and I maintained my US home with the intention to return, I was still eligible. The tool walked me through exactly what documentation I needed to keep on hand in case of questions. Saved me a ton of stress trying to interpret the complex residency requirements on my own!

Just wanted to follow up - I decided to try taxr.ai after my skeptical comment and I'm actually really impressed. My situation was complicated because I was working remotely for my US company while stuck overseas. The system identified that I qualified for an exception to the physical presence test because my absence was involuntary due to travel restrictions. It also flagged that I needed to maintain documentation showing my continued US residency intentions (like my apartment lease that I kept paying). Really helpful for situations that fall outside the standard scenarios that basic tax software handles!

If you're having trouble figuring this out, you might want to try calling the IRS directly. I know that sounds like torture, but I used this service called Claimyr https://claimyr.com that got me through to an actual human at the IRS in about 15 minutes instead of waiting for hours or getting disconnected. They have a demo video here: https://youtu.be/_kiP6q8DX5c that shows how it works. I had a complicated EIC situation too (but with custody issues, not foreign residency) and needed official clarification. The IRS agent I spoke with was surprisingly helpful and gave me specific guidance for my situation. For something like EIC where the rules have exceptions to the exceptions, sometimes you just need to speak with someone who can address your specific case.

Ok I need to apologize for my skeptical comment earlier. After nothing else was working, I tried Claimyr out of desperation. I honestly didn't think it would work, but within about 20 minutes I got a call back and was talking to an actual IRS representative. The agent confirmed that my "temporary absence" from the US due to family emergency and travel restrictions wouldn't disqualify me from EIC as long as I could document my situation and intention to return. They even emailed me the specific publication sections that applied to my case. Saved me from making a costly mistake on my return!

Have you considered filing for an extension if you're still having trouble figuring this out? Form 4868 would give you until October 15th to file your return, though you'd still need to pay any estimated taxes by the regular deadline to avoid penalties.

Just to add another perspective - I'm an expat who's lived abroad for years, and the foreign earned income exclusion (Form 2555) is different from your situation. That's for people who are genuine residents of foreign countries. Since your situation is a temporary absence and you intend to return to the US, you're still considered a US resident for tax purposes, which actually helps with your EIC eligibility. Make sure you don't accidentally file as a foreign resident which would definitely disqualify you from EIC.

Based on what you've described, you should still be eligible for the Earned Income Credit. The IRS recognizes that temporary absences due to circumstances beyond your control (like travel restrictions during emergencies) don't automatically disqualify you from EIC if you maintain your US residence and intend to return. The key factors working in your favor are: 1) Your absence was unplanned and involuntary, 2) You maintained your US ties and residence, and 3) You have clear intention to return. With only $3,800 in earned income, you're well within the income limits for EIC. Make sure to keep documentation of your situation - any records showing why you couldn't return (travel restrictions, family emergency details, etc.) and evidence that you maintained your US residence (lease payments, bank accounts, etc.). File your return as a US resident - don't use any foreign residency forms since your situation is temporary. You should be able to claim the EIC without issues, but having that documentation ready will help if the IRS ever has questions about your residency status during 2023.