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home test. You cannot claim the foreign

amount in U.S. dollars using the

were an employee of the U.S.

earned income exclusion.

exchange rates in effect when you

Government or any of its agencies,

•

actually received the income. If you are a

Amounts that are actually a distribution

Line 12

cash-basis taxpayer, include in income on

of corporate earnings or profits rather

Form 1040 the foreign earned income you

than a reasonable allowance as

Complete columns (a) through (d) if you

received in 2011 regardless of when you

compensation for your personal services,

were present in the United States or any

•

earned it. (For example, include wages on

Amounts received after the end of the

of its possessions in 2011. Do not include

Form 1040, line 7.)

tax year following the tax year in which

time spent in the United States or its

you performed the services, or

possessions before your period of bona

Income is earned in the year you

•

Amounts you must include in gross

fide residence or physical presence,

performed the services for which you

income because of your employer’s

whichever applies, began or after it

received the pay. But if you received your

contributions to a nonexempt employees’

ended.

last wage or salary payment for 2010 in

trust or to a nonqualified annuity contract.

2011 because of your employer’s payroll

Column (d). Enter, in U.S. dollars, the

Income earned in prior year. Foreign

period, that income can be treated as

amount of income earned in the United

earned income received in 2011 for

earned in 2011. If you cannot treat that

States on business (such as meetings or

services you performed in 2010 can be

wage or salary payment as earned in

conventions). Attach a statement showing

excluded from your 2011 gross income if,

2011, the rules explained later under

how you determined the amount. Do not

and to the extent, the income would have

Income earned in prior year apply. See

include this income on line 17. Even if you

been excludable if you had received it in

Pub. 54 for more details.

live and work in a foreign country, any

2010.

Foreign earned income. For purposes

income earned during the time spent in

of this form, foreign earned income

If you are excluding income under this

the United States on business is

means only the following types of income

rule, do not include this income on line

considered U.S. source income and

received for personal services you

17. Instead, attach a statement to Form

cannot be excluded.

performed in a foreign country during the

2555-EZ showing how you figured the

Line 14

period for which you meet the tax home

exclusion. Enter the amount that would

test and either the bona fide residence

have been excludable in 2010 on Form

Enter the number of days in your

test or the physical presence test.

2555-EZ to the left of line 18. Next to the

qualifying period that fall within 2011.

•

Wages, salaries, tips, and bonuses.

amount enter “Exclusion of Income

Your qualifying period is the period during

•

Noncash income (such as a home or

Earned in 2010.” Include it in the total

which you meet the tax home test and

car) if reported as income on Form 1040,

reported on line 18.

either the bona fide residence test or the

line 7.

Note. If you claimed any deduction,

physical presence test.

•

Allowances or reimbursements if

credit, or exclusion on your 2010 return

Example. You establish a tax home and

reported as income on Form 1040, line 7.

that is definitely related to the 2010

bona fide residence in a foreign country

Foreign earned income does not

foreign earned income you are excluding

on August 14, 2011. You maintain the tax

under this rule, you may have to amend

include:

home and residence until January 31,

•

your 2010 income tax return to adjust the

Income earned in the United States on

2013. The number of days in your

amount claimed. To do this, file Form

business (Form 2555-EZ, line 12, column

qualifying period that fall within 2011 is

1040X.

(d)),

140 (August 14 through December 31,

•

Amounts paid to you by the U.S.

2011).

Government or any of its agencies if you

Line 17

Enter the total foreign earned income you

earned and received in 2011. Report the

-3-

Instructions For Form 2555-Ez - Foreign Earned Income Exclusion - Internal Revenue Service - 2011 Page 3

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