Instructions For Form 2555 - Foreign Earned Income - Internal Revenue Service - 2008 Page 4
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12•
during which you lived in the applicable
The fair market value of compensation
The exclusion under section 119 and
location on line 1. Add the results shown
provided in kind (such as the fair rental
the housing deduction are not considered
on line 4 of each worksheet, and enter the
value of lodging provided by your
definitely related to the excluded income.
total on line 29b.
employer as long as it is not excluded on
Line 44. Report in full on Form 1040 and
line 25).
If you moved during the 2008 tax
•
related forms and schedules all
Rent paid by your employer directly to
!
year and are completing more
deductions allowed in figuring your
your landlord.
than one Limit on Housing
•
adjusted gross income (Form 1040, line
CAUTION
Amounts paid by your employer to
Expenses Worksheet, the total number of
37). Enter on line 44 the total amount of
reimburse you for housing expenses,
days entered on line 1 of your worksheets
those deductions (such as the deduction
educational expenses of your
may not exceed the total number of days
for moving expenses, the deduction for
dependents, or as part of a tax
in your qualifying period that fall within the
one-half of self-employment tax, and the
equalization plan.
2008 tax year (that is, the number of days
expenses claimed on Schedule C or C-EZ
Self-employed individuals. If all of your
entered on Form 2555, line 31).
(Form 1040)) that are not allowed
foreign earned income (Part IV) is
because they are allocable to the
Line 31. Enter the number of days in
self-employment income, skip lines 34
excluded income. This applies only to
your qualifying period that fall within your
and 35 and enter -0- on line 36. If you
deductions definitely related to the
2008 tax year. Your qualifying period is
qualify, be sure to complete Part IX.
excluded earned income. See Pub. 54 for
the period during which you meet the tax
details on how to report your itemized
home test and either the bona fide
Part VII
deductions (such as unreimbursed
residence or the physical presence test.
employee business expenses) that are
Example. You establish a tax home
Married couples. If both you and your
allocable to the excluded income.
and bona fide residence in a foreign
spouse qualify for, and choose to claim,
country on August 14, 2008. You maintain
the foreign earned income exclusion,
Part IX
the tax home and residence until January
figure the amount of the exclusion
31, 2010. You are a calendar year
separately for each of you. You each
If line 33 is more than line 36 and line 27
taxpayer. The number of days in your
must complete Part VII of your separate
is more than line 43, complete this part to
qualifying period that fall within your 2008
Forms 2555.
figure your housing deduction. Also,
tax year is 140 (August 14 through
complete this part to figure your housing
Community income. The amount of the
December 31, 2008).
deduction carryover from 2007.
exclusion is not affected by the
Nontaxable U.S. Government
income-splitting provisions of community
One-year carryover. If the amount on
allowances. If you or your spouse
property laws. The sum of the amounts
line 46 is more than the amount on line
received a nontaxable housing allowance
figured separately for each of you is the
47, you can carry the difference over to
as a military or civilian employee of the
total amount excluded on a joint return.
your 2009 tax year. If you cannot deduct
U.S. Government, see Pub. 54 for
the excess in 2009 because of the 2009
Part VIII
information on how that allowance may
limit, you cannot carry it over to any future
affect your housing exclusion or
If you claim either of the exclusions, you
tax year.
deduction.
cannot claim any deduction (including
Line 34. Enter any amount your
moving expenses), credit, or exclusion
Paperwork Reduction Act Notice. We
employer paid or incurred on your behalf
that is definitely related to the excluded
ask for the information on this form to
that is foreign earned income included in
income. If only part of your foreign earned
carry out the Internal Revenue laws of the
your gross income for the tax year
income is excluded, you must prorate
United States. You are required to give us
(without regard to section 911).
such items based on the ratio that your
the information. We need it to ensure that
Examples of employer-provided
excludable earned income bears to your
you are complying with these laws and to
amounts are:
total foreign earned income. See Pub. 54
allow us to figure and collect the right
•
Wages and salaries received from your
for details on how to figure the amount
amount of tax.
employer.
allocable to the excluded income.
You are not required to provide the
information requested on a form that is
subject to the Paperwork Reduction Act
unless the form displays a valid OMB
Housing Deduction Carryover
control number. Books or records relating
Worksheet — Line 49
Keep for Your Records
to a form or its instructions must be
retained as long as their contents may
become material in the administration of
any Internal Revenue law. Generally, tax
1. Enter the amount from your 2007 Form 2555, line 46 . . . . . . . . . .
1.
returns and return information are
2. Enter the amount from your 2007 Form 2555, line 48 . . . . . . . . . .
2.
confidential, as required by Internal
Revenue Code section 6103.
3. Subtract line 2 from line 1. If the result is zero, stop; enter -0- on
The average time and expenses
line 49 of your 2008 Form 2555. You do not have any housing
required to complete and file this form will
deduction carryover from 2007 . . . . . . . . . . . . . . . . . . . . . . . . . .
3.
vary depending on individual
circumstances. For the estimated
4. Enter the amount from your 2008 Form 2555, line 47 . . . . . . . . . .
4.
averages, see the instructions for your
5. Enter the amount from your 2008 Form 2555, line 48 . . . . . . . . . .
5.
income tax return.
If you have suggestions for making this
6. Subtract line 5 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.
form simpler, we would be happy to hear
7. Enter the smaller of line 3 or line 6 here and on line 49 of your 2008
from you. See the instructions for your
income tax return.
Form 2555. If line 3 is more than line 6, you cannot carry the
difference over to any future tax year . . . . . . . . . . . . . . . . . . . . .
7.
-4-
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial