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charged on the tax not paid by the regular

A U.S. citizen who is a bona fide

chooses to be taxed as a resident of the

due date as explained earlier.

resident of a foreign country, or countries,

United States can qualify under this test if

for an uninterrupted period that includes

the time requirements are met. See Pub.

Choosing the Exclusion

an entire tax year (January 1 – December

54 for details on how to make this choice.

31), or

To choose the foreign earned income

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Line 3

A U.S. resident alien who is a citizen or

exclusion, complete the appropriate parts

national of a country with which the

of Form 2555-EZ and file it with your

Tax Home Test

United States has an income tax treaty in

Form 1040 or Form 1040X, Amended

effect and who is a bona fide resident of a

To meet this test, your tax home must be

U.S. Individual Income Tax Return. Your

foreign country, or countries, for an

in a foreign country, or countries (see

initial choice to claim the exclusion must

uninterrupted period that includes an

Foreign country on page 1), throughout

usually be made on a timely filed return

entire tax year (January 1 – December

your period of bona fide residence or

(including extensions) or on a return

31). See Pub. 901, U.S. Tax Treaties, for

physical presence, whichever applies. For

amending a timely filed return. However,

a list of countries with which the United

this purpose, your period of physical

there are exceptions. See Pub. 54 for

States has an income tax treaty in effect.

presence is the 330 full days during which

more information.

you were present in a foreign country, not

No specific rule determines if you are a

Once you choose to claim the

the 12 consecutive months during which

bona fide resident of a foreign country

exclusion, that choice remains in effect for

because the determination involves your

those days occurred.

that year and all future years unless it is

intention about the length and nature of

Your tax home is your regular or

revoked. To revoke your choice, you must

your stay. Evidence of your intention may

principal place of business, employment,

attach a statement to your return for the

be your words and acts. If these conflict,

or post of duty, regardless of where you

first year you do not wish to claim the

your acts carry more weight than your

maintain your family residence. If you do

exclusion. If you revoke your choice, you

words. Generally, if you go to a foreign

not have a regular or principal place of

cannot claim the exclusion for your next 5

country for a definite, temporary purpose

business because of the nature of your

tax years without the approval of the

and return to the United States after you

trade or business, your tax home is your

Internal Revenue Service. See Pub. 54

accomplish it, you are not a bona fide

regular place of abode (the place where

for details.

resident of the foreign country. If

you regularly live).

accomplishing the purpose requires an

Figuring tax on income not excluded.

You are not considered to have a tax

extended, indefinite stay, and you make

If you claim the foreign earned income

home in a foreign country for any period

your home in the foreign country, you

exclusion, you must figure the tax on your

during which your abode is in the United

may be a bona fide resident. See Pub. 54

nonexcluded income using the tax rates

States. However, if you are temporarily

for more information and examples.

that would have applied had you not

present in the United States, or you

claimed the exclusion. See the

If you submitted a statement of

maintain a dwelling in the United States

Instructions for Form 1040 and complete

nonresidence to the authorities of a

(whether or not that dwelling is used by

the Foreign Earned Income Tax

foreign country in which you earned

your spouse and dependents), it does not

Worksheet to figure the amount of tax to

income and the authorities hold that you

necessarily mean that your abode is in

enter on Form 1040, line 44. When

are not subject to their income tax laws by

the United States during that time.

figuring your alternative minimum tax on

reason of nonresidency in the foreign

Example. You are employed on an

Form 6251, you must use the Foreign

country, you are not considered a bona

offshore oil rig in the territorial waters of a

Earned Income Tax Worksheet in the

fide resident of that country.

foreign country and work a 28-day on/

instructions for Form 6251.

If you submitted such a statement and

28-day off schedule. You return to your

Earned income credit. You cannot take

the authorities have not made an adverse

family residence in the United States

the earned income credit if you claim the

determination of your nonresident status,

during your off periods. You are

exclusion.

you are not considered a bona fide

considered to have an abode in the

resident of that country.

United States and do not meet the tax

Foreign tax credit or deduction. You

home test. You cannot claim the foreign

Line 1b. If you answered “Yes” on line

cannot claim a credit or deduction for

earned income exclusion.

1a, enter the dates your bona fide

foreign income taxes paid on income you

residence began and ended. If you are

exclude. If all of your foreign earned

Line 12

still a bona fide resident, enter

income is excluded, you cannot claim a

“Continues” in the space for the date your

credit or deduction for the foreign taxes

Complete columns (a) through (d) if you

bona fide residence ended.

paid on that income. If only part of your

were present in the United States or any

income is excluded, you cannot claim a

of its possessions in 2008. Do not include

Lines 2a and 2b

credit or deduction for the foreign taxes

time spent in the United States or its

allocable to the excluded income. For

possessions before your period of bona

Physical Presence Test

details on how to figure the amount

fide residence or physical presence,

allocable to the excluded income, see

To meet this test, you must be a U.S.

whichever applies, began or after it

Pub. 514, Foreign Tax Credit for

citizen or resident alien who is physically

ended.

Individuals.

present in a foreign country, or countries,

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

for at least 330 full days during any period

IRA deduction. If you claim the

amount of income earned in the United

of 12 months in a row. A full day means

exclusion, special rules apply in figuring

States on business (such as meetings or

the 24-hour period that starts at midnight.

the amount of your IRA deduction. For

conventions). Attach a statement showing

details, see Pub. 590, Individual

how you determined the amount. Do not

To figure the minimum of 330 full days’

Retirement Arrangements (IRAs).

include this income on line 17. Even if you

presence, add all separate periods you

live and work in a foreign country, any

were present in a foreign country during

income earned during the time spent in

the 12-month period in which those days

the United States on business is

occurred. The 330 full days can be

Specific Instructions

considered U.S. source income and

interrupted by periods when you are

cannot be excluded.

traveling over international waters or are

Lines 1a and 1b

otherwise not in a foreign country. See

Line 14

Pub. 54 for more information and

Bona Fide Residence Test

examples.

Enter the number of days in your

To meet this test, you must be one of the

Note. A nonresident alien who, with a

qualifying period that fall within 2008.

following:

U.S. citizen or U.S. resident alien spouse,

Your qualifying period is the period during

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Instructions For Form 2555-Ez - Foreign Earned Income - Internal Revenue Service - 2008 Page 2

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