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you must amend your 2009 tax return. To

employer that is excludable from your

Include expenses for housing only

do this, file Form 1040X.

income under section 119. To be

during periods for which:

•

excludable, the meals and lodging must

The value of your housing is not

Income earned in prior year. Foreign

have been provided for your employer’s

excluded from gross income under

earned income received in 2010 for

convenience and on your employer’s

section 119 (unless you maintained a

services you performed in 2009 can be

business premises. In addition, you must

second foreign household as defined

excluded from your 2010 gross income if,

have been required to accept the lodging

later), and

and to the extent, the income would have

•

as a condition of your employment. If you

You meet the tax home test and either

been excludable if you had received it in

lived in a camp provided by, or on behalf

the bona fide residence or physical

2009.

of, your employer, the camp may be

presence test.

If you are excluding income under this

considered part of your employer’s

Second foreign household. If you

rule, do not include this income in Part IV.

business premises. See Exclusion of

maintained a separate foreign household

Instead, attach a statement to Form 2555

Meals and Lodging in Pub. 54 for details.

for your spouse and dependents at a

showing how you figured the exclusion.

place other than your tax home because

Enter the amount that would have been

Part VI

the living conditions at your tax home

excludable in 2009 on Form 2555 to the

were dangerous, unhealthful, or otherwise

left of line 45. Next to the amount enter

Line 28. Enter the total reasonable

adverse, you can include the expenses of

“Exclusion of Income Earned in 2009.”

expenses paid or incurred during the tax

the second household on line 28.

Include it in the total reported on line 45.

year by you, or on your behalf, for your

Married couples. The following rules

foreign housing and the housing of your

Note. If you claimed any deduction,

apply if both you and your spouse qualify

spouse and dependents if they lived with

credit, or exclusion on your 2009 return

for the tax benefits of Form 2555.

you. You can also include the reasonable

that is definitely related to the 2009

expenses of a second foreign household

Same foreign household. If you and

foreign earned income you are excluding

(defined later). Housing expenses are

your spouse lived in the same foreign

under this rule, you may have to amend

considered reasonable to the extent they

household and file a joint return, you must

your 2009 income tax return to adjust the

are not lavish or extravagant under the

figure your housing amounts (line 33)

amount you claimed. To do this, file Form

circumstances.

jointly. If you file separate returns, only

1040X.

one spouse can claim the housing

Line 20. If you engaged in an

Housing expenses include rent, utilities

exclusion or deduction.

unincorporated trade or business in which

(other than telephone charges), real and

In figuring your housing amount

both personal services and capital were

personal property insurance,

jointly, either spouse (but not both) can

material income-producing factors, a

nonrefundable fees paid to obtain a lease,

claim the housing exclusion or housing

reasonable amount of compensation for

rental of furniture and accessories,

deduction. However, if you and your

your personal services will be considered

residential parking, and household

spouse have different periods of

earned income. The amount treated as

repairs. You can also include the fair

residence or presence, and the one with

earned income, however, cannot be more

rental value of housing provided by, or on

the shorter period of residence or

than 30% of your share of the net profits

behalf of, your employer if you have not

presence claims the exclusion or

from the trade or business after

excluded it on line 25.

deduction, you can claim as housing

subtracting the deduction for one-half of

Do not include deductible interest and

expenses only the expenses for that

self-employment tax.

taxes, any amount deductible by a

shorter period. The spouse claiming the

If capital is not an income-producing

tenant-stockholder in connection with

exclusion or deduction can aggregate the

factor and personal services produced the

cooperative housing, the cost of buying or

housing expenses of both spouses,

business income, the 30% rule does not

improving a house, principal payments on

subject to the limit on housing expenses

apply. Your entire gross income is earned

a mortgage, or depreciation on the house.

(line 29b), and subtract his or her base

income.

Also, do not include the cost of domestic

housing amount.

Line 25. Enter the value of meals and/or

labor, pay television, or the cost of buying

Separate foreign households. If you

lodging provided by, or on behalf of, your

furniture or accessories.

and your spouse lived in separate foreign

households, you each can claim qualified

expenses for your own household only if:

•

Your tax homes were not within a

reasonable commuting distance of each

Limit on Housing Expenses

other, and

Worksheet — Line 29b

•

Keep for Your Records

Each spouse’s household was not

within a reasonable commuting distance

of the other spouse’s tax home.

Note. If the location in which you incurred housing expenses is not listed in the table

Otherwise, only one spouse can claim

beginning on page 5, and the number of days in your qualifying period that fall within the

his or her housing exclusion or deduction.

This is true even if you and your spouse

2010 tax year is 365, DO NOT complete this worksheet. Instead, enter $27,450 on line 29b.

file separate returns.

See Pub. 54 for additional information.

1. Enter the number of days in your qualifying period that fall within the

Line 29a. Enter the city or other location

2010 tax year (see the instructions for line 31) . . . . . . . . . . . . . . .

(if applicable) and the country where you

2. Did you enter 365 on line 1?

incurred foreign housing expenses during

the tax year only if your location is listed

No. If the amount on line 1 is less than 365, skip line 2 and go to

in the table beginning on page 5;

line 3.

otherwise, leave this line blank.

Line 29b. Your housing expenses may

Yes. Locate the amount under the column Limit on Housing

not exceed a certain limit. The limit on

Expenses (full year) from the table beginning on page 5 for the

housing expenses varies depending upon

location in which you incurred housing expenses. This is your

the location in which you incur housing

limit on housing expenses. Enter the amount here and on

expenses. In 2010, for most locations,

line 29b.

this limit is $27,450 (30 percent of

$91,500) if your qualifying period includes

STOP

Do not complete the rest of this worksheet . . . . . . . . . . . .

all of 2010 (or $75.21 per day if the

number of days in your qualifying period

3. Enter the amount under the column Limit on Housing Expenses

that fall within your 2010 tax year is less

(daily) from the table beginning on page 5 for the location in which

than 365).

you incurred housing expenses. If the location is not listed in the

The table beginning on page 5 lists the

table, enter $75.21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

housing expense limits based on

geographic differences in foreign housing

4. Multiply line 1 by line 3. This is your limit on housing expenses.

costs relative to housing costs in the

Enter the result here and on line 29b . . . . . . . . . . . . . . . . . . . . .

United States. If the location in which you

incurred housing expenses is listed in the

-3-

Instructions for Form 2555 (2010)

Instructions For Form 2555 - Foreign Earned Income - Internal Revenue Service - 2010 Page 3

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