Instructions For Form 2555-Ez - Foreign Earned Income Exclusion

2016

Department of the Treasury

Internal Revenue Service

Instructions for Form

2555-EZ

Foreign Earned Income Exclusion

Waiver of Time Requirements

The term “foreign country ” does not

Section references are to the Internal Revenue

Code unless otherwise noted.

include U.S. possessions or territories. It

If your tax home was in a foreign country

does not include the Antarctic region.

Future Developments

and you were a bona fide resident of, or

physically present in, a foreign country

Who Qualifies

For the latest information about

and had to leave because of war, civil

developments related to Form 2555-EZ

You can use Form 2555-EZ to claim the

unrest, or similar adverse conditions, the

and its instructions, such as legislation

foreign earned income exclusion if all of

minimum time requirements specified

enacted after they were published, go to

the following apply.

under the bona fide residence and

You meet the seven conditions listed at

physical presence tests may be waived.

the top of Form 2555-EZ.

You must be able to show that you

What's New

Your total foreign earned income

reasonably could have expected to meet

received in 2016 is reported on Form

the minimum time requirements if you had

Exclusion amount. For 2016, the

1040, line 7.

not been required to leave. Each year the

maximum exclusion has increased to

You don't have a housing deduction

IRS will publish in the Internal Revenue

$101,300.

carryover from 2015.

Bulletin a list of the only countries that

General Instructions

You meet either the bona fide residence

qualify for the waiver for the previous year

test (see the instructions for lines 1a and

and the dates they qualify. If you left one

1b, later) or the physical presence test

of the countries during the period

Do not include on Form 1040,

(see the instructions for lines 2a and 2b,

indicated, you can claim the foreign

line 64 (federal income tax

later).

earned income exclusion on Form

withheld), any taxes an employer

CAUTION

You meet the tax home test (see the

2555-EZ, but only for the number of days

withheld from your pay and paid to the

instructions for line 3, later).

you were a bona fide resident of, or

foreign country's tax authority instead of to

physically present in, the foreign country.

the U.S. Treasury.

Note. Income from working abroad as an

employee of the U.S. Government doesn't

If you can claim the foreign earned

qualify for the foreign earned income

Purpose of Form

income exclusion because of the waiver of

exclusion. Don't file Form 2555-EZ.

time requirements, attach a statement to

If you qualify, you can use Form 2555-EZ

your return explaining that you expected to

Married Couples

instead of Form 2555, Foreign Earned

meet the applicable time requirement, but

Income, to figure your foreign earned

If both you and your spouse qualify for,

the conditions in the foreign country

income exclusion. You can't exclude more

and choose to claim, the foreign earned

prevented you from the normal conduct of

than your foreign earned income for the

income exclusion, figure the amount of the

business. Also, enter “Claiming Waiver” in

year.

exclusion separately for each of you. You

the top margin on page 1 of your Form

must each complete separate Forms

2555-EZ.

General Information

2555-EZ.

Additional Information

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

Community income. The amount of the

alien living in a foreign country, you are

exclusion isn't affected by the

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

subject to the same U.S. income tax laws

income-splitting provisions of community

Resident Aliens Abroad, has more

that apply to citizens and resident aliens

property laws. The sum of the amounts

information about the bona fide residence

living in the United States.

figured separately for each of you is the

test, the physical presence test, and the

total amount excluded on a joint return.

Note. Specific rules apply to determine if

foreign earned income exclusion. You can

you are a resident or nonresident alien of

download this publication (as well as other

Travel to Cuba

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

forms and publications) at IRS.gov. You

Generally, if you were in Cuba in violation

Guide for Aliens, for details.

can also get this publication by writing to:

of U.S. travel restrictions, the following

National Distribution Center, 1201 N.

Foreign country. A foreign country is

rules apply.

Mitsubishi Motorway, Bloomington, IL

any territory under the sovereignty of a

Any time spent in Cuba can't be

61705-6613.

government other than that of the United

counted in determining if you qualify under

States.

When To File

the bona fide residence or physical

The term “foreign country” includes the

presence test.

A 2016 calendar year Form 1040 is

country's territorial waters and airspace,

Any income earned in Cuba isn't

generally due April 18, 2017.

but not international waters and the

considered foreign earned income.

airspace above them. It also includes the

However, you are automatically

Note. If you performed services at the

seabed and subsoil of those submarine

granted a 2-month extension of time to file

U.S. Naval Base at Guantanamo Bay, you

areas adjacent to the country's territorial

(to June 15, 2017) if, on the due date of

weren't in violation of U.S. travel

waters over which it has exclusive rights

your return, you live outside the United

restrictions.

under international law to explore and

States and Puerto Rico and your tax home

exploit the natural resources.

(defined later) is outside the United States

and Puerto Rico. If you take this

Oct 19, 2016

Cat. No. 14623P

Instructions For Form 2555-Ez - Foreign Earned Income Exclusion - 2016

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