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which you meet the tax home test and

Allowances or reimbursements if

that is definitely related to the 2007

either the bona fide residence test or the

reported as income on Form 1040, line 7.

foreign earned income you are excluding

physical presence test.

under this rule, you may have to amend

Foreign earned income does not

your 2007 income tax return to adjust the

Example. You establish a tax home and

include:

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amount claimed. To do this, file Form

bona fide residence in a foreign country

Amounts from line 12, column (d),

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1040X.

on August 14, 2008. You maintain the tax

Amounts paid to you by the U.S.

home and residence until January 31,

Government or any of its agencies if you

Paperwork Reduction Act Notice. We

2010. The number of days in your

were an employee of the U.S.

ask for the information on this form to

qualifying period that fall within 2008 is

Government or any of its agencies,

carry out the Internal Revenue laws of the

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140 (August 14 through December 31,

Amounts that are actually a distribution

United States. You are required to give us

2008).

of corporate earnings or profits rather

the information. We need it to ensure that

than a reasonable allowance as

you are complying with these laws and to

Line 17

compensation for your personal services,

allow us to figure and collect the right

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Amounts received after the end of the

Enter the total foreign earned income you

amount of tax.

tax year following the tax year in which

earned and received in 2008. Report the

You are not required to provide the

you performed the services, or

amount in U.S. dollars using the

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information requested on a form that is

Amounts you must include in gross

exchange rates in effect when you

subject to the Paperwork Reduction Act

income because of your employer’s

actually received the income. Be sure to

unless the form displays a valid OMB

contributions to a nonexempt employees’

report on Form 1040 all income you

control number. Books or records relating

trust or to a nonqualified annuity contract.

received in 2008 regardless of when you

to a form or its instructions must be

earned it.

Income earned in prior year. Foreign

retained as long as their contents may

earned income received in 2008 for

Income is earned in the year you

become material in the administration of

services you performed in 2007 can be

performed the services for which you

any Internal Revenue law. Generally, tax

excluded from your 2008 gross income if,

received the pay. But if you received your

returns and return information are

and to the extent, the income would have

last wage or salary payment for 2007 in

confidential, as required by Internal

been excludable if you had received it in

2008 because of your employer’s payroll

Revenue Code section 6103.

2007.

period, that income can be treated as

The average time and expenses

earned in 2008. If you cannot treat that

If you are excluding income under this

required to complete and file this form will

wage or salary payment as earned in

rule, do not include this income on line

vary depending on individual

17. Instead, attach a statement to Form

2008, the rules explained later under

circumstances. For the estimated

2555-EZ showing how you figured the

Income earned in prior year apply. See

averages, see the instructions for your

exclusion. Enter the amount that would

Pub. 54 for more details.

income tax return.

have been excludable in 2007 on Form

Foreign earned income. For purposes

If you have suggestions for making this

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

of this form, foreign earned income

form simpler, we would be happy to hear

amount enter “Exclusion of Income

means only the following types of income

from you. See the instructions for your

Earned in 2007.” Include it in the total

received for personal services you

income tax return.

reported on line 18.

performed in a foreign country during the

Note. If you claimed any deduction,

period for which you meet the tax home

credit, or exclusion on your 2007 return

test and either the bona fide residence

test or the physical presence test.

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Wages, salaries, tips, and bonuses.

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Noncash income (such as a home or

car) if reported as income on Form 1040,

line 7.

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Instructions For Form 2555-Ez - Foreign Earned Income - Internal Revenue Service - 2008 Page 3

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