Instructions For Form 2555 printable pdf download

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Department of the Treasury

Internal Revenue Service

Instructions for Form 2555

Foreign Earned Income

Section references are to the Internal Revenue Code.

1. You meet the tax home test (see

United States and do not meet the tax

General Instructions

below).

home test. You cannot claim either of the

2. You meet either the bona fide

exclusions or the housing deduction.

Do not include on Form 1040, line

residence test (see page 2) or the

Violation of Travel Restrictions

63 (federal income tax withheld),

physical presence test (see page 2).

any taxes a foreign employer

Generally, if you were in a foreign country

CAUTION

withheld from your pay and paid to the

Note. If your only earned income from

in violation of U.S. travel restrictions, the

foreign country’s tax authority instead of

work abroad is pay you received from the

following rules apply:

to the U.S. Treasury.

U.S. Government as its employee, you do

1. Any time spent in that country

not qualify for either of the exclusions or

cannot be counted in determining if you

Purpose of Form

the housing deduction. Do not file Form

qualify under the bona fide residence or

2555.

If you are a U.S. citizen or a U.S. resident

physical presence test,

alien living in a foreign country, you are

Tax home test. To meet this test, your

2. Any income earned in that country

subject to the same U.S. income tax laws

tax home must be in a foreign country, or

is not considered foreign earned income,

that apply to citizens and resident aliens

countries, throughout your period of bona

and

living in the United States. But if you

fide residence or physical presence,

3. Any housing expenses in that

qualify, use Form 2555 to exclude a

whichever applies. For this purpose, your

country (or housing expenses for your

limited amount of your foreign earned

period of physical presence is the 330 full

spouse or dependents in another country

income. Also, use it to claim the housing

days during which you were present in a

while you were in that country) are not

exclusion or deduction. You cannot

foreign country, not the 12 consecutive

considered qualified housing expenses.

exclude or deduct more than your foreign

months during which those days

See the list on this page for countries

earned income for the tax year.

occurred.

to which U.S. travel restrictions apply.

Your tax home is your regular or

You may be able to use Form

principal place of business, employment,

2555-EZ, Foreign Earned Income

Additional Information

or post of duty, regardless of where you

Exclusion, if none of your foreign earned

Pub. 54, Tax Guide for U.S. Citizens and

maintain your family residence. If you do

income was from self-employment, your

Resident Aliens Abroad, has more

not have a regular or principal place of

total foreign earned income did not

information about the bona fide residence

business because of the nature of your

exceed $80,000, you do not have any

test, the physical presence test, the

trade or business, your tax home is your

business or moving expenses, and you

foreign earned income exclusion, and the

regular place of abode (the place where

do not claim the housing exclusion or

housing exclusion and deduction. You

you regularly live).

deduction. For more details, see Form

can get this publication from most U.S.

2555-EZ and its separate instructions.

You are not considered to have a tax

embassies and consulates or by writing

home in a foreign country for any period

Foreign country. A foreign country is

to: Eastern Area Distribution Center, P.O.

during which your abode is in the United

any territory (including the air space,

Box 85074, Richmond, VA 23261-5074.

States. However, if you are temporarily

territorial waters, seabed, and subsoil)

You can also download this publication

present in the United States, or you

under the sovereignty of a government

(as well as other forms and publications)

maintain a dwelling in the United States

other than the United States. It does not

from the IRS website at

(whether or not that dwelling is used by

include U.S. possessions or territories.

Waiver of Time Requirements

your spouse and dependents), it does not

Note. Specific rules apply to determine if

necessarily mean that your abode is in

If your tax home was in a foreign country

you are a resident or nonresident alien of

the United States during that time.

and you were a bona fide resident of, or

the United States. See Pub. 519, U.S.

Example. You are employed on an

physically present in, a foreign country

Tax Guide for Aliens, for details.

offshore oil rig in the territorial waters of a

and had to leave because of war, civil

foreign country and work a 28-day on/

unrest, or similar adverse conditions, the

Who Qualifies

28-day off schedule. You return to your

minimum time requirements specified

You qualify for the tax benefits available

family residence in the United States

under the bona fide residence and

to taxpayers who have foreign earned

during your off periods. You are

physical presence tests may be waived.

income if both 1 and 2 apply.

considered to have an abode in the

You must be able to show that you

reasonably could have expected to meet

the minimum time requirements if you had

List of Countries To Which Travel Restrictions Applied in 2004

not been required to leave. Each year the

IRS will publish in the Internal Revenue

Country

Time Periods

Bulletin a list of countries and the dates

they qualify for the waiver. If you left one

Cuba

Entire year

of the countries during the period

Iraq*

January 1, 2004 through July 29, 2004

indicated, you can claim the tax benefits

Libya*

January 1, 2004 through September 20, 2004

on Form 2555, but only for the number of

*Individuals whose activities in Iraq and Libya are or were permitted by a specific or general license issued by

days you were a bona fide resident of, or

the Department of the Treasury’s Office of Foreign Assets Control (OFAC) were not in violation of U.S. law.

physically present in, the foreign country.

Accordingly, the restrictions did not apply to such individuals with respect to the activities permitted by the

If you can claim either of the

license.

exclusions or the housing deduction

Cat. No. 11901A

Instructions For Form 2555

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