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2010

Department of the Treasury

Internal Revenue Service

Instructions for Form 2555

Foreign Earned Income

Note. If your only earned income from

foreign earned income exclusion, and the

Section references are to the Internal

work abroad is pay you received from the

housing exclusion and deduction. You

Revenue Code unless otherwise noted.

U.S. Government as its employee, you do

can get this publication from most U.S.

General Instructions

not qualify for either of the exclusions or

Embassies and consulates or by writing

the housing deduction. Do not file Form

to: National Distribution Center, 1201 N.

Do not include on Form 1040, line

2555.

Mitsubishi Motorway, Bloomington, IL

61 (federal income tax withheld),

61705-6613. You can also download this

Tax home test. To meet this test, your

publication (as well as other forms and

any taxes a foreign employer

tax home must be in a foreign country, or

CAUTION

withheld from your pay and paid to the

publications) at IRS.gov.

countries (see Foreign country, earlier),

foreign country’s tax authority instead of

throughout your period of bona fide

Waiver of Time Requirements

to the U.S. Treasury.

residence or physical presence,

If your tax home was in a foreign country

whichever applies. For this purpose, your

What’s New

and you were a bona fide resident of, or

period of physical presence is the 330 full

physically present in, a foreign country

days during which you were present in a

Exclusion amount. For 2010, the

and had to leave because of war, civil

foreign country, not the 12 consecutive

maximum exclusion has increased to

unrest, or similar adverse conditions, the

months during which those days

$91,500.

minimum time requirements specified

occurred.

Purpose of Form

under the bona fide residence and

Your tax home is your regular or

physical presence tests may be waived.

principal place of business, employment,

If you qualify, you can use Form 2555 to

You must be able to show that you

or post of duty, regardless of where you

figure your foreign earned income

reasonably could have expected to meet

maintain your family residence. If you do

exclusion and your housing exclusion or

the minimum time requirements if you had

not have a regular or principal place of

deduction. You cannot exclude or deduct

not been required to leave. Each year the

business because of the nature of your

more than your foreign earned income for

IRS will publish in the Internal Revenue

trade or business, your tax home is your

the year.

Bulletin a list of the only countries that

regular place of abode (the place where

You may be able to use Form

qualify for the waiver for the previous year

you regularly live).

and the dates they qualify. If you left one

2555-EZ, Foreign Earned Income

You are not considered to have a tax

of the countries during the period

Exclusion, if you did not have any

home in a foreign country for any period

self-employment income for the year,

indicated, you can claim the tax benefits

during which your abode is in the United

your total foreign earned income did not

on Form 2555, but only for the number of

States. However, if you are temporarily

exceed $91,500, you do not have any

days you were a bona fide resident of, or

present in the United States, or you

business or moving expenses, and you

physically present in, the foreign country.

maintain a dwelling in the United States

do not claim the housing exclusion or

If you can claim either of the

(whether or not that dwelling is used by

deduction. For more details, see Form

exclusions or the housing deduction

your spouse and dependents), it does not

2555-EZ and its separate instructions.

because of the waiver of time

necessarily mean that your abode is in

requirements, attach a statement to your

General Information

the United States during that time.

return explaining that you expected to

Example. You are employed on an

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

meet the applicable time requirement, but

offshore oil rig in the territorial waters of a

alien living in a foreign country, you are

the conditions in the foreign country

foreign country and work a 28-day on/

subject to the same U.S. income tax laws

prevented you from the normal conduct of

28-day off schedule. You return to your

that apply to citizens and resident aliens

business. Also, enter “Claiming Waiver” in

family residence in the United States

living in the United States.

the top margin on page 1 of Form 2555.

during your off periods. You are

Note. Specific rules apply to determine if

considered to have an abode in the

When To File

you are a resident or nonresident alien of

United States and do not meet the tax

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

home test. You cannot claim either of the

A 2010 calendar year Form 1040 is

Tax Guide for Aliens, for details.

exclusions or the housing deduction.

generally due April 18, 2011.

Foreign country. A foreign country is

Travel to Cuba

However, you are automatically

any territory under the sovereignty of a

granted a 2-month extension of time to

government other than that of the United

Generally, if you were in Cuba in violation

file (to June 15, 2011, for a 2010 calendar

States.

of U.S. travel restrictions, the following

year return) if, on the due date of your

rules apply.

The term “foreign country” includes the

•

return, you live outside the United States

Any time spent in Cuba cannot be

country’s territorial waters and airspace,

and Puerto Rico and your tax home

counted in determining if you qualify

but not international waters and the

(defined earlier) is outside the United

under the bona fide residence or physical

airspace above them. It also includes the

States and Puerto Rico. If you take this

presence test.

seabed and subsoil of those submarine

•

extension, you must attach a statement to

Any income earned in Cuba is not

areas adjacent to the country’s territorial

your return explaining that you meet

considered foreign earned income.

waters over which it has exclusive rights

•

these two conditions.

Any housing expenses in Cuba (or

under international law to explore and

housing expenses for your spouse or

exploit the natural resources.

The automatic 2-month extension also

dependents in another country while you

applies to paying the tax. However, you

The term “foreign country ” does not

were in Cuba) are not considered

will owe interest on any tax not paid by

include U.S. possessions or territories. It

qualified housing expenses.

the regular due date of your return. This is

does not include the Antarctic region.

Note. If you performed services at the

April 18, 2011, for a 2010 calendar year

Who Qualifies

return.

U.S. Naval Base at Guantanamo Bay,

you were not in violation of U.S. travel

When to claim the exclusion(s). The

You qualify for the tax benefits available

restrictions.

to taxpayers who have foreign earned

first year you plan to take the foreign

income if both of the following apply.

earned income exclusion and/or the

Additional Information

•

You meet the tax home test (discussed

housing exclusion or deduction, you may

later on this page).

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

not yet have met either the physical

•

You meet either the bona fide

Resident Aliens Abroad, has more

presence test or the bona fide residence

residence test (see page 2) or the

information about the bona fide residence

test by the due date of your return

physical presence test (see page 2).

test, the physical presence test, the

(including the automatic 2-month

Cat. No. 11901A

Instructions For Form 2555 - Foreign Earned Income - Internal Revenue Service - 2010

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