Tax Extension Question: Please help!

[cbr shadow]

I'm trying to get an extension on my US taxes.  My wife and I worked in the US for most of last year, then in Australia.

Her:
Worked in US until July 2014
Worked in AUS July - Current

Me:
Worked in US until October 10th 2014
Worked in AUS October 11th - Current

From what I understand:
1) I will need to pay taxes to both AUS and USA when I work in AUS, unless I qualify for a Foreign Earned Income Exclusion (FEIE).
2) Foreign Earned Income Exclusion applies to me if I've lived in the foreign country for at least 330 out of 365 days.  This is currently not the case for myself OR my wife.
3) To get the FEIE, we can file the IRS for an extension (Form 4868) of 6 months, at which point I we would both have been in AUS at least 330 days and FEIE applies.
4) I notice on the forms it says I can only file for a 4 month extension if I live in a foreign country.  If that's the case, my wife will qualify for FEIE but I will not (by 1 month!).

Do I have any other options?

Thanks for any help!
-Ryan

[MDM]

4) I notice on the forms it says I can only file for a 4 month extension if I live in a foreign country.  If that's the case, my wife will qualify for FEIE but I will not (by 1 month!).

You may want to read closer. :)

From http://www.irs.gov/pub/irs-pdf/f4868.pdf:

Taxpayers who are out of the country.
If, on the regular due date
of your return, you are out of the country and a U.S. citizen or
resident, you are allowed 2 extra months to file your return and pay
any amount due without requesting an extension. Interest will still
be charged, however, on payments made after the regular due date,
without regard to the extension. For a calendar year return, this is
June 15, 2015. File this form and be sure to check the box on line 8
if you need an additional 4 months to file your return.

[Cathy]

From what I understand:
1) I will need to pay taxes to both AUS and USA when I work in AUS, unless I qualify for a Foreign Earned Income Exclusion (FEIE).

The foreign earned income exclusion described in 26 USC § 911 is one mechanism that alleviates double taxation. However, it is not the only mechanism. Another such mechanism is the foreign tax credit authorised by 26 USC §§ 901-909, which allows a credit for foreign taxes paid, subject to some limitations. Although there are numerous exotic exceptions, the general effect of the foreign tax credit is that if all your income is from outside the US and the foreign tax rate is higher than the US tax rate, then you don't have to pay any tax to the US. There are actually some cases where it is optimal not to take the foreign earned income exclusion, although be careful with that because there are many pitfalls waiting to ensnare you.

[cbr shadow]

Thanks guys, these are both helpful!  Mustachians are always quick to the rescue.

Another related question: Foreign Housing Exclusion/deduction.  I read a little bit about this, but I'm not clear exactly on what it covers..

When she moved to AUS my wife's company paid for 6 weeks in an apartment until she found a place to live.  From that point on we've paid for our own rental house here in Melbourne.  What does the Foreign Housing Exclusion/deduction apply to? 

I assume this can be applied towards the 6 week apartment stay.  As of right now these are being seen on my taxes as a gift from her employer which counts towards taxable income.