Instructions For Form 2555 - Foreign Earned Income - Internal Revenue Service - 2010 Page 4
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12table, or the number of days in your
home test and either the bona fide
and 35 and enter -0- on line 36. If you
qualifying period that fall within the 2010
residence or the physical presence test.
qualify for the housing deduction, be sure
tax year is less than 365, use the Limit on
to complete Part IX.
Example. You establish a tax home
Housing Expenses Worksheet on page 3
and bona fide residence in a foreign
Part VII
to figure the amount to enter on line 29b.
country on August 14, 2010. You maintain
If the location in which you incurred
the tax home and residence until January
Married couples. If both you and your
housing expenses is not listed in the
31, 2012. You are a calendar year
spouse qualify for, and choose to claim,
table, and the number of days in your
taxpayer. The number of days in your
the foreign earned income exclusion,
qualifying period is 365, enter $27,450 on
qualifying period that fall within your 2010
figure the amount of the exclusion
line 29b.
tax year is 140 (August 14 through
separately for each of you. You each
Example. For 2010, because your
December 31, 2010).
must complete Part VII of your separate
location is not listed in the table beginning
Forms 2555.
Nontaxable U.S. Government
on page 5, your limit on housing
allowances. If you or your spouse
Community income. The amount of the
expenses is $75.21 per day ($27,450
received a nontaxable housing allowance
exclusion is not affected by the
divided by 365). If you file a calendar year
as a military or civilian employee of the
income-splitting provisions of community
return and your qualifying period is
U.S. Government, see Pub. 54 for
property laws. The sum of the amounts
January 1, 2010, to October 1, 2010 (274
information on how that allowance may
figured separately for each of you is the
days), you would enter $20,608 on line
affect your housing exclusion or
total amount excluded on a joint return.
29b ($75.21 multiplied by 274 days).
deduction.
More than one foreign location. If
Part VIII
Line 34. Enter any amount your
you moved during the 2010 tax year and
employer paid or incurred on your behalf
incurred housing expenses in more than
If you claim either of the exclusions, you
that is foreign earned income included in
one foreign location as a result, complete
cannot claim any deduction (including
your gross income for the tax year
the Limit on Housing Expenses
moving expenses), credit, or exclusion
(without regard to section 911).
Worksheet on page 3 for each location in
that is definitely related to the excluded
which you incurred housing expenses,
income. If only part of your foreign earned
Examples of employer-provided
entering the number of qualifying days
income is excluded, you must prorate
amounts are:
during which you lived in the applicable
•
such items based on the ratio that your
Wages and salaries received from your
location on line 1. Add the results shown
excludable earned income bears to your
employer.
on line 4 of each worksheet, and enter the
•
total foreign earned income. See Pub. 54
The fair market value of compensation
total on line 29b.
for details on how to figure the amount
provided in kind (such as the fair rental
allocable to the excluded income.
value of lodging provided by your
If you moved during the 2010 tax
!
employer as long as it is not excluded on
The exclusion under section 119 and
year and are completing more
line 25).
the housing deduction are not considered
than one Limit on Housing
CAUTION
•
Rent paid by your employer directly to
definitely related to the excluded income.
Expenses Worksheet, the total number of
your landlord.
days entered on line 1 of your worksheets
Line 44. Report in full on Form 1040 and
•
Amounts paid by your employer to
may not exceed the total number of days
related forms and schedules all
reimburse you for housing expenses,
in your qualifying period that fall within the
deductions allowed in figuring your
educational expenses of your
2010 tax year (that is, the number of days
adjusted gross income (Form 1040, line
dependents, or as part of a tax
entered on Form 2555, line 31).
37). Enter on line 44 the total amount of
equalization plan.
Line 31. Enter the number of days in
those deductions (such as the deduction
Self-employed individuals. If all of your
your qualifying period that fall within your
for moving expenses, the deduction for
2010 tax year. Your qualifying period is
foreign earned income (Part IV) is
one-half of self-employment tax, and the
the period during which you meet the tax
self-employment income, skip lines 34
expenses claimed on Schedule C or C-EZ
(Form 1040)) that are not allowed
because they are allocable to the
excluded income. This applies only to
deductions definitely related to the
Housing Deduction Carryover
excluded earned income. See Pub. 54 for
details on how to report your itemized
Worksheet — Line 49
Keep for Your Records
deductions (such as unreimbursed
employee business expenses) that are
allocable to the excluded income.
1. Enter the amount from your 2009 Form 2555, line 46 . . . . . . . . . .
1.
Part IX
2. Enter the amount from your 2009 Form 2555, line 48 . . . . . . . . . .
2.
If line 33 is more than line 36 and line 27
3. Subtract line 2 from line 1. If the result is zero, stop; enter -0- on
is more than line 43, complete this part to
line 49 of your 2010 Form 2555. You do not have any housing
figure your housing deduction.
deduction carryover from 2009 . . . . . . . . . . . . . . . . . . . . . . . . . .
3.
Line 49. Use the housing deduction
carryover worksheet on this page to figure
4. Enter the amount from your 2010 Form 2555, line 47 . . . . . . . . . .
4.
your carryover from 2009.
5. Enter the amount from your 2010 Form 2555, line 48 . . . . . . . . . .
5.
One-year carryover. If the amount on
line 46 is more than the amount on line
6. Subtract line 5 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.
47, you can carry the difference over to
your 2011 tax year. If you cannot deduct
7. Enter the smaller of line 3 or line 6 here and on line 49 of your 2010
the excess in 2011 because of the 2011
Form 2555. If line 3 is more than line 6, you cannot carry the
limit, you cannot carry it over to any future
difference over to any future tax year . . . . . . . . . . . . . . . . . . . . .
7.
tax year.
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Instructions for Form 2555 (2010)
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