Instructions For Form 2555 (Page 4 of 4) in pdf

property laws. The sum of the amounts

excluded earned income. See Pub. 54 for

figure your housing deduction. Also,

figured separately for each of you is the

details on how to report your itemized

complete this part to figure your housing

total amount excluded on a joint return.

deductions (such as unreimbursed

deduction carryover from 2003.

employee business expenses) that are

One-year carryover. If the amount on

Part VIII

allocable to the excluded income.

line 44 is more than the amount on line

IRA deduction. The IRA deduction is not

45, you may carry the difference over to

If you claim either of the exclusions, you

definitely related to the excluded income.

your 2005 tax year. If you cannot deduct

cannot claim any deduction (including

However, special rules apply in figuring

the excess in 2005 because of the 2005

moving expenses), credit, or exclusion

the amount of your IRA deduction. For

limit, you may not carry it over to any

that is definitely related to the excluded

details, see Pub. 590, Individual

future tax year.

income. If only part of your foreign earned

Retirement Arrangements (IRAs).

income is excluded, you must prorate

such items based on the ratio that your

Foreign taxes. You cannot take a credit

Paperwork Reduction Act Notice. We

excludable earned income bears to your

or deduction for foreign income taxes paid

ask for the information on this form to

total foreign earned income. See Pub. 54

or accrued on income that is excluded

carry out the Internal Revenue laws of the

for details on how to figure the amount

under either of the exclusions.

United States. You are required to give us

allocable to the excluded income.

If all of your foreign earned income is

the information. We need it to ensure that

The exclusion under section 119 and

excluded, you cannot claim a credit or

you are complying with these laws and to

the housing deduction are not considered

deduction for the foreign taxes paid or

allow us to figure and collect the right

definitely related to the excluded income.

accrued on that income.

amount of tax.

Line 42. Report in full on Form 1040 and

If only part of your income is excluded,

You are not required to provide the

related forms and schedules all

you cannot claim a credit or deduction for

information requested on a form that is

deductions allowed in figuring your

the foreign taxes allocable to the

subject to the Paperwork Reduction Act

adjusted gross income (Form 1040, line

excluded income. See Pub. 514, Foreign

unless the form displays a valid OMB

36). Enter on line 42 the total amount of

Tax Credit for Individuals, for details on

control number. Books or records relating

those deductions (such as the deduction

how to figure the amount allocable to the

to a form or its instructions must be

for moving expenses, the deduction for

excluded income.

retained as long as their contents may

one-half of self-employment tax, and the

become material in the administration of

Part IX

expenses claimed on Schedule C or C-EZ

any Internal Revenue law. Generally, tax

(Form 1040)) that are not allowed

returns and return information are

If line 31 is more than line 34 and line 27

because they are allocable to the

confidential, as required by section 6103.

is more than line 41, complete this part to

excluded income. This applies only to

The time needed to complete and file

deductions definitely related to the

this form will vary depending on individual

circumstances. The estimated average

time is:

Housing Deduction Carryover Worksheet — Line 47

Keep for Your Records

Recordkeeping . . . . . . .

1 hr., 51 min.

Learning about the law

1 Enter the amount from your 2003 Form 2555, line 44 . . . . . . . . . . .

or the form . . . . . . . . . .

26 min.

Preparing the form . . . .

1 hr., 46 min.

2 Enter the amount from your 2003 Form 2555, line 46 . . . . . . . . . . .

Copying, assembling,

3 Subtract line 2 from line 1. If the result is zero, stop; enter -0- on line

and sending the form to

47 of your 2004 Form 2555. You do not have any housing deduction

the IRS . . . . . . . . . . . . .

48 min.

carryover from 2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If you have comments concerning the

4 Enter the amount from your 2004 Form 2555, line 45 . . . . . . . . . . .

accuracy of these time estimates or

suggestions for making this form simpler,

5 Enter the amount from your 2004 Form 2555, line 46 . . . . . . . . . . .

we would be happy to hear from you. See

6 Subtract line 5 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

the Instructions for Form 1040.

7 Enter the smaller of line 3 or line 6 here and on line 47 of your 2004

Form 2555. If line 3 is more than line 6, you may not carry the

difference over to any future tax year . . . . . . . . . . . . . . . . . . . . . .

-4-

Instructions For Form 2555 Page 4

Related Articles

Related forms

Related Categories