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IRA deduction. If you claim either of the

extension, discussed earlier). If this

See Pub. 54 for more information and

occurs, you can either:

exclusions, special rules apply in figuring

examples.

the amount of your IRA deduction. For

1. Apply for a special extension to a

Note. A nonresident alien who, with a

details, see Pub. 590, Individual

date after you expect to qualify, or

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

Retirement Arrangements (IRAs).

2. File your return timely without

chooses to be taxed as a resident of the

claiming the exclusion and then file an

United States can qualify under this test if

amended return after you qualify.

the time requirements are met. See Pub.

Specific Instructions

54 for details on how to make this choice.

Special extension of time. To apply

for this extension, complete and file Form

Part IV

Part II

2350, Application for Extension of Time

To File U.S. Income Tax Return, with the

Foreign Earned Income

Bona Fide Residence Test

Department of the Treasury, Internal

Enter in this part the total foreign earned

Revenue Service Center, Austin, TX

To meet this test, you must be one of the

income you earned and received

73301-0215, before the due date of your

following:

•

(including income constructively received)

return. Interest is charged on the tax not

A U.S. citizen who is a bona fide

during the tax year. If you are a cash

paid by the regular due date as explained

resident of a foreign country, or countries,

basis taxpayer, include in income on

earlier.

for an uninterrupted period that includes

Form 1040, the foreign earned income

an entire tax year (January 1 – December

Amended return. File Form 1040X,

you received during the tax year

31, if you file a calendar year return), or

Amended U.S. Individual Income Tax

•

regardless of when you earned it. (For

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

Return, to change a return you already

example, include wages on Form 1040,

national of a country with which the

filed. Generally, Form 1040X must be

line 7.)

United States has an income tax treaty in

filed within 3 years after the date the

effect and who is a bona fide resident of a

Income is earned in the tax year you

original return was filed or within 2 years

foreign country, or countries, for an

perform the services for which you

after the date the tax was paid, whichever

uninterrupted period that includes an

receive the pay. But if you are a cash

is later.

entire tax year (January 1 – December 31,

basis taxpayer and, because of your

if you file a calendar year return). See

Choosing the Exclusion(s)

employer’s payroll periods, you received

Pub. 901, U.S. Tax Treaties, for a list of

your last salary payment for 2009 in 2010,

To choose either of the exclusions,

countries with which the United States

that income may be treated as earned in

complete the appropriate parts of Form

has an income tax treaty in effect.

2010. If you cannot treat that salary

2555 and file it with your Form 1040 or

payment as income earned in 2010, the

Whether you are a bona fide resident

Form 1040X, Amended U.S. Individual

rules explained under Income earned in

of a foreign country depends on your

Income Tax Return. Your initial choice to

prior year, discussed later, apply. See

intention about the length and nature of

claim the exclusion must usually be made

Pub. 54 for more details.

your stay. Evidence of your intention may

on a timely filed return (including

be your words and acts. If these conflict,

Foreign earned income for this

extensions) or on a return amending a

your acts carry more weight than your

purpose means wages, salaries,

timely filed return. However, there are

words. Generally, if you go to a foreign

professional fees, and other

exceptions. See Pub. 54 for details.

country for a definite, temporary purpose

compensation received for personal

and return to the United States after you

Once you choose to claim an

services you performed in a foreign

accomplish it, you are not a bona fide

exclusion, that choice remains in effect for

country during the period for which you

resident of the foreign country. If

that year and all future years unless it is

meet the tax home test and either the

accomplishing the purpose requires an

revoked. To revoke your choice, you must

bona fide residence test or the physical

extended, indefinite stay, and you make

attach a statement to your return for the

presence test. It also includes noncash

your home in the foreign country, you

first year you do not wish to claim the

income (such as a home or car) and

may be a bona fide resident. See Pub. 54

exclusion(s). If you revoke your choice,

allowances or reimbursements.

for more information and examples.

you cannot claim the exclusion(s) for your

Foreign earned income does not

next 5 tax years without the approval of

Line 10. Enter the dates your bona fide

include amounts that are actually a

the Internal Revenue Service. See Pub.

residence began and ended. If you are

distribution of corporate earnings or

54 for more information.

still a bona fide resident, enter

profits rather than a reasonable allowance

“Continues” in the space for the date

Figuring tax on income not excluded.

as compensation for your personal

your bona fide residence ended.

If you claim either of the exclusions or the

services. It also does not include the

Lines 13a and 13b. If you submitted a

housing deduction, you must figure the

following types of income.

statement of nonresidence to the

tax on your nonexcluded income using

•

Pension and annuity income (including

the tax rates that would have applied had

authorities of a foreign country in which

social security benefits and railroad

you not claimed the exclusions. See the

you earned income and the authorities

retirement benefits treated as social

Instructions for Form 1040 and complete

hold that you are not subject to their

security).

the Foreign Earned Income Tax

income tax laws by reason of

•

Interest, ordinary dividends, capital

nonresidency in the foreign country, you

Worksheet to figure the amount of tax to

gains, alimony, etc.

are not considered a bona fide resident of

enter on Form 1040, line 44. When

•

Portion of 2009 moving expense

figuring your alternative minimum tax on

that country.

deduction allocable to 2010 that is

Form 6251, you must use the Foreign

If you submitted such a statement and

included in your 2010 gross income. For

Earned Income Tax Worksheet in the

the authorities have not made an adverse

details, see Moving Expense Attributable

instructions for Form 6251.

determination of your nonresident status,

to Foreign Earnings in 2 Years under

you are not considered a bona fide

Earned income credit. You cannot take

Moving Expenses in Pub. 54.

•

resident of that country.

Amounts paid to you by the U.S.

the earned income credit if you claim

either of the exclusions or the housing

Government or any of its agencies if you

Part III

deduction.

were an employee of the U.S.

Government or any of its agencies.

Foreign tax credit or deduction. You

Physical Presence Test

•

Amounts received after the end of the

cannot take a credit or deduction for

tax year following the tax year in which

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

foreign income taxes paid or accrued on

you performed the services.

citizen or resident alien who is physically

income that is excluded under either of

•

Amounts you must include in gross

present in a foreign country, or countries,

the exclusions. If all of your foreign

income because of your employer’s

for at least 330 full days during any period

earned income is excluded, you cannot

contributions to a nonexempt employees’

of 12 months in a row. A full day means

claim a credit or deduction for the foreign

trust or to a nonqualified annuity contract.

the 24-hour period that starts at midnight.

taxes paid or accrued on that income. If

only part of your income is excluded, you

To figure 330 full days, add all

Income received in prior year. Foreign

cannot claim a credit or deduction for the

separate periods you were present in a

earned income received in 2009 for

foreign taxes allocable to the excluded

foreign country during the 12-month

services you performed in 2010 can be

income. See Pub. 514, Foreign Tax

period shown on line 16. The 330 full

excluded from your 2009 gross income if,

Credit for Individuals, for details on how to

days can be interrupted by periods when

and to the extent, the income would have

figure the amount allocable to the

you are traveling over international waters

been excludable if you had received it in

excluded income.

or are otherwise not in a foreign country.

2010. To claim the additional exclusion,

-2-

Instructions for Form 2555 (2010)

Instructions For Form 2555 - Foreign Earned Income - Internal Revenue Service - 2010 Page 2

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