Instructions For Form 2555 - Foreign Earned Income - Internal Revenue Service - 2009

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Department of the Treasury
Internal Revenue Service
Instructions for Form 2555
Foreign Earned Income
You meet either the bona fide
Section references are to the Internal
Additional Information
residence test (see page 2) or the
Revenue Code unless otherwise noted.
Pub. 54, Tax Guide for U.S. Citizens and
physical presence test (see page 2).
General Instructions
Resident Aliens Abroad, has more
Note. If your only earned income from
information about the bona fide residence
work abroad is pay you received from the
test, the physical presence test, the
Do not include on Form 1040, line
U.S. Government as its employee, you do
!
foreign earned income exclusion, and the
61 (federal income tax withheld),
not qualify for either of the exclusions or
housing exclusion and deduction. You
any taxes a foreign employer
CAUTION
the housing deduction. Do not file Form
can get this publication from most U.S.
withheld from your pay and paid to the
2555.
embassies and consulates or by writing
foreign country’s tax authority instead of
to: National Distribution Center, 1201 N.
Tax home test. To meet this test, your
to the U.S. Treasury.
Mitsubishi Motorway, Bloomington, IL
tax home must be in a foreign country, or
What’s New
61705-6613. You can also download this
countries (see Foreign country, earlier),
publication (as well as other forms and
throughout your period of bona fide
Exclusion amount. For 2009, the
publications) from the IRS website at
residence or physical presence,
maximum exclusion has increased to
whichever applies. For this purpose, your
$91,400.
period of physical presence is the 330 full
Waiver of Time Requirements
days during which you were present in a
Purpose of Form
If your tax home was in a foreign country
foreign country, not the 12 consecutive
and you were a bona fide resident of, or
months during which those days
If you qualify, you can use Form 2555 to
physically present in, a foreign country
occurred.
figure your foreign earned income
and had to leave because of war, civil
exclusion and your housing exclusion or
Your tax home is your regular or
unrest, or similar adverse conditions, the
deduction. You cannot exclude or deduct
principal place of business, employment,
minimum time requirements specified
more than your foreign earned income for
or post of duty, regardless of where you
under the bona fide residence and
the year.
maintain your family residence. If you do
physical presence tests may be waived.
You may be able to use Form
not have a regular or principal place of
You must be able to show that you
2555-EZ, Foreign Earned Income
business because of the nature of your
reasonably could have expected to meet
Exclusion, if you did not have any
trade or business, your tax home is your
the minimum time requirements if you had
self-employment income for the year,
regular place of abode (the place where
not been required to leave. Each year the
your total foreign earned income did not
you regularly live).
IRS will publish in the Internal Revenue
exceed $91,400, you do not have any
Bulletin a list of the only countries that
You are not considered to have a tax
business or moving expenses, and you
qualify for the waiver for the previous year
home in a foreign country for any period
do not claim the housing exclusion or
and the dates they qualify. If you left one
during which your abode is in the United
deduction. For more details, see Form
States. However, if you are temporarily
of the countries during the period
2555-EZ and its separate instructions.
indicated, you can claim the tax benefits
present in the United States, or you
on Form 2555, but only for the number of
maintain a dwelling in the United States
General Information
days you were a bona fide resident of, or
(whether or not that dwelling is used by
If you are a U.S. citizen or a U.S. resident
physically present in, the foreign country.
your spouse and dependents), it does not
alien living in a foreign country, you are
necessarily mean that your abode is in
If you can claim either of the
subject to the same U.S. income tax laws
the United States during that time.
exclusions or the housing deduction
that apply to citizens and resident aliens
Example. You are employed on an
because of the waiver of time
living in the United States.
offshore oil rig in the territorial waters of a
requirements, attach a statement to your
Note. Specific rules apply to determine if
foreign country and work a 28-day on/
return explaining that you expected to
you are a resident or nonresident alien of
meet the applicable time requirement, but
28-day off schedule. You return to your
the United States. See Pub. 519, U.S.
family residence in the United States
the conditions in the foreign country
Tax Guide for Aliens, for details.
during your off periods. You are
prevented you from the normal conduct of
considered to have an abode in the
business. Also, enter “Claiming Waiver” in
Foreign country. A foreign country is
United States and do not meet the tax
the top margin on page 1 of your 2009
any territory under the sovereignty of a
home test. You cannot claim either of the
Form 2555.
government other than that of the United
exclusions or the housing deduction.
States.
When To File
The term “foreign country” includes the
Travel to Cuba
A 2009 calendar year Form 1040 is
country’s territorial waters and airspace,
Generally, if you were in Cuba in violation
generally due April 15, 2010.
but not international waters and the
of U.S. travel restrictions, the following
airspace above them. It also includes the
rules apply.
However, you are automatically
seabed and subsoil of those submarine
Any time spent in Cuba cannot be
granted a 2-month extension of time to
areas adjacent to the country’s territorial
counted in determining if you qualify
file (to June 15, 2010, for a 2009 calendar
waters over which it has exclusive rights
year return) if, on the due date of your
under the bona fide residence or physical
under international law to explore and
return, you live outside the United States
presence test.
exploit the natural resources.
and Puerto Rico and your tax home
Any income earned in Cuba is not
The term “foreign country ” does not
considered foreign earned income.
(defined earlier) is outside the United
include U.S. possessions or territories. It
Any housing expenses in Cuba (or
States and Puerto Rico. If you take this
housing expenses for your spouse or
extension, you must attach a statement to
does not include the Antarctic region.
your return explaining that you meet
dependents in another country while you
Who Qualifies
these two conditions.
were in Cuba) are not considered
qualified housing expenses.
You qualify for the tax benefits available
The automatic 2-month extension also
to taxpayers who have foreign earned
Note. If you performed services at the
applies to paying the tax. However,
income if both of the following apply.
U.S. Naval Base at Guantanamo Bay,
interest is charged on the unpaid tax from
You meet the tax home test (discussed
you were not in violation of U.S. travel
the regular due date (April 15, 2010, for a
later on this page).
restrictions.
2009 calendar year return) until it is paid.
Cat. No. 11901A

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