Looking for a Form 2555 Templates? Download it for free!

2011

Department of the Treasury

Internal Revenue Service

Instructions for Form 2555

Foreign Earned Income

Who Qualifies

Note. If you performed services at the

Section references are to the Internal

U.S. Naval Base at Guantanamo Bay,

Revenue Code unless otherwise noted.

You qualify for the tax benefits available

you were not in violation of U.S. travel

General Instructions

to taxpayers who have foreign earned

restrictions.

income if both of the following apply.

•

You meet the tax home test (discussed

Additional Information

Do not include on Form 1040, line

later on this page).

62 (federal income tax withheld),

•

You meet either the bona fide

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

any taxes a foreign employer

CAUTION

residence test (see page 2) or the

Resident Aliens Abroad, has more

withheld from your pay and paid to the

physical presence test (see page 2).

information about the bona fide residence

foreign country’s tax authority instead of

test, the physical presence test, the

Note. If your only earned income from

to the U.S. Treasury.

foreign earned income exclusion, and the

work abroad is pay you received from the

What’s New

housing exclusion and deduction. You

U.S. Government as its employee, you do

can get this publication from most U.S.

not qualify for either of the exclusions or

Future developments. The IRS has

Embassies and consulates or by writing

the housing deduction. Do not file Form

created a page on IRS.gov for information

to: National Distribution Center, 1201 N.

2555.

about Form 2555 and its instructions, at

Mitsubishi Motorway, Bloomington, IL

Tax home test. To meet this test, your

Information about

61705-6613. You can also download this

tax home must be in a foreign country, or

any future developments affecting Form

publication (as well as other forms and

countries (see Foreign country, earlier),

2555 (such as legislation enacted after

publications) at IRS.gov.

throughout your period of bona fide

we release it) will be posted on that page.

Waiver of Time Requirements

residence or physical presence,

Exclusion amount. For 2011, the

whichever applies. For this purpose, your

If your tax home was in a foreign country

maximum exclusion has increased to

period of physical presence is the 330 full

and you were a bona fide resident of, or

$92,900.

days during which you were present in a

physically present in, a foreign country

foreign country, not the 12 consecutive

and had to leave because of war, civil

Purpose of Form

months during which those days

unrest, or similar adverse conditions, the

occurred.

minimum time requirements specified

If you qualify, you can use Form 2555 to

under the bona fide residence and

Your tax home is your regular or

figure your foreign earned income

physical presence tests may be waived.

principal place of business, employment,

exclusion and your housing exclusion or

You must be able to show that you

or post of duty, regardless of where you

deduction. You cannot exclude or deduct

reasonably could have expected to meet

more than your foreign earned income for

maintain your family residence. If you do

the minimum time requirements if you had

not have a regular or principal place of

the year.

not been required to leave. Each year the

business because of the nature of your

You may be able to use Form

IRS will publish in the Internal Revenue

trade or business, your tax home is your

2555-EZ, Foreign Earned Income

Bulletin a list of the only countries that

regular place of abode (the place where

Exclusion, if you did not have any

qualify for the waiver for the previous year

you regularly live).

self-employment income for the year,

and the dates they qualify. If you left one

You are not considered to have a tax

your total foreign earned income did not

of the countries during the period

home in a foreign country for any period

exceed $92,900, you do not have any

indicated, you can claim the tax benefits

during which your abode is in the United

business or moving expenses, and you

on Form 2555, but only for the number of

States. However, if you are temporarily

do not claim the housing exclusion or

days you were a bona fide resident of, or

present in the United States, or you

deduction. For more details, see Form

physically present in, the foreign country.

maintain a dwelling in the United States

2555-EZ and its separate instructions.

If you can claim either of the

(whether or not that dwelling is used by

exclusions or the housing deduction

your spouse and dependents), it does not

General Information

because of the waiver of time

necessarily mean that your abode is in

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

requirements, attach a statement to your

the United States during that time.

alien living in a foreign country, you are

return explaining that you expected to

Example. You are employed on an

subject to the same U.S. income tax laws

meet the applicable time requirement, but

offshore oil rig in the territorial waters of a

that apply to citizens and resident aliens

the conditions in the foreign country

foreign country and work a 28-day on/

living in the United States.

prevented you from the normal conduct of

28-day off schedule. You return to your

business. Also, enter “Claiming Waiver” in

family residence in the United States

Note. Specific rules apply to determine if

the top margin on page 1 of Form 2555.

during your off periods. You are

you are a resident or nonresident alien of

considered to have an abode in the

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

When To File

United States and do not meet the tax

Tax Guide for Aliens, for details.

home test. You cannot claim either of the

A 2011 calendar year Form 1040 is

Foreign country. A foreign country is

exclusions or the housing deduction.

generally due April 17, 2012.

any territory under the sovereignty of a

Travel to Cuba

However, you are automatically

government other than that of the United

granted a 2-month extension of time to

States.

Generally, if you were in Cuba in violation

file (to June 15, 2012, for a 2011 calendar

of U.S. travel restrictions, the following

The term “foreign country” includes the

year return) if, on the due date of your

rules apply.

country’s territorial waters and airspace,

return, you live outside the United States

•

Any time spent in Cuba cannot be

but not international waters and the

and Puerto Rico and your tax home

counted in determining if you qualify

airspace above them. It also includes the

(defined earlier) is outside the United

under the bona fide residence or physical

seabed and subsoil of those submarine

States and Puerto Rico. If you take this

presence test.

areas adjacent to the country’s territorial

extension, you must attach a statement to

•

Any income earned in Cuba is not

waters over which it has exclusive rights

your return explaining that you meet

considered foreign earned income.

under international law to explore and

these two conditions.

•

Any housing expenses in Cuba (or

exploit the natural resources.

housing expenses for your spouse or

The automatic 2-month extension also

The term “foreign country ” does not

dependents in another country while you

applies to paying the tax. However, you

include U.S. possessions or territories. It

were in Cuba) are not considered

will owe interest on any tax not paid by

does not include the Antarctic region.

qualified housing expenses.

the regular due date of your return. This is

Oct 19, 2011

Cat. No. 11901A

Instructions For Form 2555 - Foreign Earned Income - Internal Revenue Service - 2011

Related Articles

Related forms

Related Categories