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Department of the Treasury

Internal Revenue Service

Instructions for Form 2555

Foreign Earned Income

Tax home test. To meet this test, your

to: National Distribution Center, 1201 N.

Section references are to the Internal

tax home must be in a foreign country, or

Mitsubishi Motorway, Bloomington, IL

Revenue Code unless otherwise noted.

countries (see Foreign country, earlier),

61705-6613. You can also download this

General Instructions

throughout your period of bona fide

publication (as well as other forms and

residence or physical presence,

publications) from the IRS website at

Do not include on Form 1040, line

whichever applies. For this purpose, your

62 (federal income tax withheld),

period of physical presence is the 330 full

Waiver of Time Requirements

any taxes a foreign employer

days during which you were present in a

CAUTION

If your tax home was in a foreign country

foreign country, not the 12 consecutive

withheld from your pay and paid to the

and you were a bona fide resident of, or

foreign country’s tax authority instead of

months during which those days

physically present in, a foreign country

to the U.S. Treasury.

occurred.

and had to leave because of war, civil

Your tax home is your regular or

What’s New

unrest, or similar adverse conditions, the

principal place of business, employment,

minimum time requirements specified

or post of duty, regardless of where you

Exclusion amount. For 2008, the

under the bona fide residence and

maintain your family residence. If you do

maximum exclusion has increased to

physical presence tests may be waived.

not have a regular or principal place of

$87,600.

You must be able to show that you

business because of the nature of your

reasonably could have expected to meet

Purpose of Form

trade or business, your tax home is your

the minimum time requirements if you had

regular place of abode (the place where

If you qualify, you can use Form 2555 to

not been required to leave. Each year the

you regularly live).

figure your foreign earned income

IRS will publish in the Internal Revenue

You are not considered to have a tax

exclusion and your housing exclusion or

Bulletin a list of countries and the dates

home in a foreign country for any period

deduction. You cannot exclude or deduct

they qualify for the waiver. If you left one

during which your abode is in the United

more than your foreign earned income for

of the countries during the period

States. However, if you are temporarily

the year.

indicated, you can claim the tax benefits

present in the United States, or you

on Form 2555, but only for the number of

You may be able to use Form

maintain a dwelling in the United States

days you were a bona fide resident of, or

2555-EZ, Foreign Earned Income

(whether or not that dwelling is used by

physically present in, the foreign country.

Exclusion, if you did not have any

your spouse and dependents), it does not

self-employment income for the year,

If you can claim either of the

necessarily mean that your abode is in

your total foreign earned income did not

exclusions or the housing deduction

the United States during that time.

exceed $87,600, you do not have any

because of the waiver of time

Example. You are employed on an

business or moving expenses, and you

requirements, attach a statement to your

offshore oil rig in the territorial waters of a

do not claim the housing exclusion or

return explaining that you expected to

foreign country and work a 28-day on/

deduction. For more details, see Form

meet the applicable time requirement, but

28-day off schedule. You return to your

2555-EZ and its separate instructions.

the conditions in the foreign country

family residence in the United States

prevented you from the normal conduct of

General Information

during your off periods. You are

business. Also, enter “Claiming Waiver” in

considered to have an abode in the

the top margin on page 1 of your 2008

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

United States and do not meet the tax

Form 2555.

alien living in a foreign country, you are

home test. You cannot claim either of the

subject to the same U.S. income tax laws

When To File

exclusions or the housing deduction.

that apply to citizens and resident aliens

living in the United States.

A 2008 calendar year Form 1040 is

Travel to Cuba

generally due April 15, 2009.

Note. Specific rules apply to determine if

Generally, if you were in Cuba in violation

you are a resident or nonresident alien of

However, you are automatically

of U.S. travel restrictions, the following

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

granted a 2-month extension of time to

rules apply.

•

Tax Guide for Aliens, for details.

file (to June 15, 2009, for a 2008 calendar

Any time spent in Cuba cannot be

year return) if, on the due date of your

Foreign country. A foreign country is

counted in determining if you qualify

return, you live outside the United States

any territory (including the airspace,

under the bona fide residence or physical

and Puerto Rico and your tax home

territorial waters, seabed, and subsoil)

presence test.

•

(defined earlier) is outside the United

under the sovereignty of a government

Any income earned in Cuba is not

States and Puerto Rico. If you take this

other than the United States.

considered foreign earned income.

•

extension, you must attach a statement to

Any housing expenses in Cuba (or

The term “foreign country” does not

your return explaining that you meet

housing expenses for your spouse or

include U.S. possessions or territories. It

these two conditions.

dependents in another country while you

does not include the Antarctic region.

were in Cuba) are not considered

The automatic 2-month extension also

Who Qualifies

qualified housing expenses.

applies to paying the tax. However,

interest is charged on the unpaid tax from

Note. If you performed services at the

You qualify for the tax benefits available

the regular due date (April 15, 2009, for a

U.S. Naval Base at Guantanamo Bay,

to taxpayers who have foreign earned

2008 calendar year return) until it is paid.

you were not in violation of U.S. travel

income if both of the following apply.

•

restrictions.

Special extension of time. The first

You meet the tax home test (discussed

year you plan to take the foreign earned

later on this page).

•

Additional Information

income exclusion and/or the housing

You meet either the bona fide

exclusion or deduction, you may not

residence test (see page 2) or the

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

expect to qualify until after the automatic

physical presence test (see page 2).

Resident Aliens Abroad, has more

2-month extension period described

Note. If your only earned income from

information about the bona fide residence

earlier. If this occurs, you can apply for an

work abroad is pay you received from the

test, the physical presence test, the

extension to a date after you expect to

U.S. Government as its employee, you do

foreign earned income exclusion, and the

qualify.

not qualify for either of the exclusions or

housing exclusion and deduction. You

the housing deduction. Do not file Form

can get this publication from most U.S.

To apply for this extension, complete

2555.

embassies and consulates or by writing

and file Form 2350, Application for

Cat. No. 11901A

Instructions For Form 2555 - Foreign Earned Income - Internal Revenue Service - 2008

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