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When to claim the exclusion(s). The

only part of your income is excluded, you

of 12 months in a row. A full day means

first year you plan to take the foreign

cannot claim a credit or deduction for the

the 24-hour period that starts at midnight.

earned income exclusion and/or the

foreign taxes allocable to the excluded

To figure 330 full days, add all

housing exclusion or deduction, you may

income. See Pub. 514, Foreign Tax

separate periods you were present in a

not yet have met either the physical

Credit for Individuals, for details on how to

foreign country during the 12-month

presence test or the bona fide residence

figure the amount allocable to the

period shown on line 16. The 330 full

test by the due date of your return

excluded income.

days can be interrupted by periods when

(including the automatic 2-month

you are traveling over international waters

IRA deduction. If you claim either of the

extension, discussed earlier.) If this

or are otherwise not in a foreign country.

exclusions, special rules apply in figuring

occurs, you can either:

See Pub. 54 for more information and

the amount of your IRA deduction. For

1. Apply for a special extension to a

examples.

details, see Pub. 590, Individual

date after you expect to qualify, or

Retirement Arrangements (IRAs).

Note. A nonresident alien who, with a

2. File your return timely without

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

claiming the exclusion and then file an

chooses to be taxed as a resident of the

amended return after you qualify.

Specific Instructions

United States can qualify under this test if

the time requirements are met. See Pub.

Special extension of time. To apply

54 for details on how to make this choice.

for this extension, complete and file Form

Part II

2350, Application for Extension of Time

Part IV

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

Bona Fide Residence Test

Department of the Treasury, Internal

Foreign Earned Income

To meet this test, you must be one of the

Revenue Service Center, Austin, TX

following:

Enter in this part the total foreign earned

73301-0215, before the due date of your

•

A U.S. citizen who is a bona fide

income you earned and received

return. Interest is charged on the tax not

resident of a foreign country, or countries,

(including income constructively received)

paid by the regular due date as explained

for an uninterrupted period that includes

during the tax year. If you are a cash

earlier.

an entire tax year (January 1 – December

basis taxpayer, include in income on

Amended return. File Form 1040X,

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

Form 1040, the foreign earned income

Amended U.S. Individual Income Tax

•

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

you received during the tax year

Return, to change a return you already

national of a country with which the

regardless of when you earned it. (For

filed. Generally, Form 1040X must be

United States has an income tax treaty in

example, include wages on Form 1040,

filed within 3 years after the date the

effect and who is a bona fide resident of a

line 7.)

original return was filed or within 2 years

foreign country, or countries, for an

Income is earned in the tax year you

after the date the tax was paid, whichever

uninterrupted period that includes an

perform the services for which you

is later.

entire tax year (January 1 – December 31,

receive the pay. But if you are a cash

if you file a calendar year return). See

Choosing the Exclusion(s)

basis taxpayer and, because of your

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

employer’s payroll periods, you received

To choose either of the exclusions,

countries with which the United States

your last salary payment for 2008 in 2009,

complete the appropriate parts of Form

has an income tax treaty in effect.

that income may be treated as earned in

2555 and file it with your Form 1040 or

No specific rule determines if you are a

2009. If you cannot treat that salary

Form 1040X, Amended U.S. Individual

bona fide resident of a foreign country

payment as income earned in 2009, the

Income Tax Return. Your initial choice to

because the determination involves your

rules explained under Income earned in

claim the exclusion must usually be made

intention about the length and nature of

prior year, discussed later, apply. See

on a timely filed return (including

your stay. Evidence of your intention may

Pub. 54 for more details.

extensions) or on a return amending a

be your words and acts. If these conflict,

Foreign earned income for this

timely filed return. However, there are

your acts carry more weight than your

purpose means wages, salaries,

exceptions. See Pub. 54 for details.

words. Generally, if you go to a foreign

professional fees, and other

Once you choose to claim an

country for a definite, temporary purpose

compensation received for personal

exclusion, that choice remains in effect for

and return to the United States after you

services you performed in a foreign

that year and all future years unless it is

accomplish it, you are not a bona fide

country during the period for which you

revoked. To revoke your choice, you must

resident of the foreign country. If

meet the tax home test and either the

attach a statement to your return for the

accomplishing the purpose requires an

bona fide residence test or the physical

first year you do not wish to claim the

extended, indefinite stay, and you make

presence test. It also includes noncash

exclusion(s). If you revoke your choice,

your home in the foreign country, you

income (such as a home or car) and

you cannot claim the exclusion(s) for your

may be a bona fide resident. See Pub. 54

allowances or reimbursements.

next 5 tax years without the approval of

for more information and examples.

Foreign earned income does not

the Internal Revenue Service. See Pub.

Line 10. Enter the dates your bona fide

include amounts that are actually a

54 for more information.

residence began and ended. If you are

distribution of corporate earnings or

Figuring tax on income not excluded.

still a bona fide resident, enter

profits rather than a reasonable allowance

If you claim either of the exclusions or the

“Continues” in the space for the date

as compensation for your personal

housing deduction, you must figure the

your bona fide residence ended.

services. It also does not include the

tax on your nonexcluded income using

following types of income.

Lines 13a and 13b. If you submitted a

the tax rates that would have applied had

•

Pension and annuity income (including

statement of nonresidence to the

you not claimed the exclusions. See the

social security and railroad retirement

authorities of a foreign country in which

Instructions for Form 1040 and complete

benefits treated as social security).

you earned income and the authorities

the Foreign Earned Income Tax

•

Interest, ordinary dividends, capital

hold that you are not subject to their

Worksheet to figure the amount of tax to

gains, alimony, etc.

income tax laws by reason of

enter on Form 1040, line 44. When

•

Portion of 2008 moving expense

nonresidency in the foreign country, you

figuring your alternative minimum tax on

deduction allocable to 2009 that is

are not considered a bona fide resident of

Form 6251, you must use the Foreign

included in your 2009 gross income. For

that country.

Earned Income Tax Worksheet in the

details, see Moving Expense Attributable

instructions for Form 6251.

If you submitted such a statement and

to Foreign Earnings in 2 Years under

the authorities have not made an adverse

Earned income credit. You cannot take

Moving Expenses in Pub. 54.

determination of your nonresident status,

•

the earned income credit if you claim

Amounts paid to you by the U.S.

you are not considered a bona fide

either of the exclusions or the housing

Government or any of its agencies if you

resident of that country.

deduction.

were an employee of the U.S.

Foreign tax credit or deduction. You

Government or any of its agencies.

Part III

•

cannot take a credit or deduction for

Amounts received after the end of the

foreign income taxes paid or accrued on

tax year following the tax year in which

Physical Presence Test

income that is excluded under either of

you performed the services.

•

the exclusions. If all of your foreign

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

Amounts you must include in gross

earned income is excluded, you cannot

citizen or resident alien who is physically

income because of your employer’s

claim a credit or deduction for the foreign

present in a foreign country, or countries,

contributions to a nonexempt employees’

taxes paid or accrued on that income. If

for at least 330 full days during any period

trust or to a nonqualified annuity contract.

-2-

Instructions for Form 2555 (2009)

Instructions For Form 2555 - Foreign Earned Income - Internal Revenue Service - 2009 Page 2

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