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Special extension of time. The first year

for an uninterrupted period that includes

the time requirements are met. See Pub.

you plan to take the foreign earned

an entire tax year (January 1 – December

54 for details on how to make this choice.

income exclusion, you may not expect to

31), or

•

Line 3

qualify until after the automatic 2-month

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

extension period described above. If this

national of a country with which the

occurs, you can apply for an extension to

United States has an income tax treaty in

Tax Home Test

a date after you expect to qualify.

effect and who is a bona fide resident of a

To meet this test, your tax home must be

foreign country, or countries, for an

To apply for this extension, complete

in a foreign country, or countries (see

uninterrupted period that includes an

and file Form 2350, Application for

Foreign country on page 1), throughout

entire tax year (January 1 – December

Extension of Time To File U.S. Income

your period of bona fide residence or

31). See Pub. 901, U.S. Tax Treaties, for

Tax Return, with the Internal Revenue

physical presence, whichever applies. For

a list of countries with which the United

Service Center, Austin, TX 73301-0215,

this purpose, your period of physical

States has an income tax treaty in effect.

before the due date of your return.

presence is the 330 full days during which

Interest is charged on the tax not paid by

No specific rule determines if you are a

you were present in a foreign country, not

the regular due date as explained earlier.

bona fide resident of a foreign country

the 12 consecutive months during which

because the determination involves your

those days occurred.

Choosing the Exclusion

intention about the length and nature of

Your tax home is your regular or

your stay. Evidence of your intention may

To choose the foreign earned income

principal place of business, employment,

be your words and acts. If these conflict,

exclusion, complete the appropriate parts

or post of duty, regardless of where you

your acts carry more weight than your

of Form 2555-EZ and file it with your

maintain your family residence. If you do

words. Generally, if you go to a foreign

Form 1040 or Form 1040X, Amended

not have a regular or principal place of

country for a definite, temporary purpose

U.S. Individual Income Tax Return. Your

business because of the nature of your

and return to the United States after you

initial choice to claim the exclusion must

trade or business, your tax home is your

accomplish it, you are not a bona fide

usually be made on a timely filed return

regular place of abode (the place where

resident of the foreign country. If

(including extensions) or on a return

you regularly live).

accomplishing the purpose requires an

amending a timely filed return. However,

extended, indefinite stay, and you make

You are not considered to have a tax

there are exceptions. See Pub. 54 for

your home in the foreign country, you

home in a foreign country for any period

more information.

may be a bona fide resident. See Pub. 54

during which your abode is in the United

Once you choose to claim the

for more information and examples.

States. However, if you are temporarily

exclusion, that choice remains in effect for

present in the United States, or you

If you submitted a statement of

that year and all future years unless it is

maintain a dwelling in the United States

nonresidence to the authorities of a

revoked. To revoke your choice, you must

(whether or not that dwelling is used by

foreign country in which you earned

attach a statement to your return for the

your spouse and dependents), it does not

income and the authorities hold that you

first year you do not wish to claim the

necessarily mean that your abode is in

are not subject to their income tax laws by

exclusion. If you revoke your choice, you

the United States during that time.

reason of nonresidency in the foreign

cannot claim the exclusion for your next 5

country, you are not considered a bona

Example. You are employed on an

tax years without the approval of the

fide resident of that country.

offshore oil rig in the territorial waters of a

Internal Revenue Service. See Pub. 54

foreign country and work a 28-day on/

If you submitted such a statement and

for details.

28-day off schedule. You return to your

the authorities have not made an adverse

Earned income credit. You cannot take

family residence in the United States

determination of your nonresident status,

the earned income credit if you claim the

during your off periods. You are

you are not considered a bona fide

exclusion.

considered to have an abode in the

resident of that country.

Foreign tax credit or deduction. You

United States and do not meet the tax

Line 1b. If you answered “Yes” on line

cannot claim a credit or deduction for

home test. You cannot claim the foreign

1a, enter the dates your bona fide

foreign income taxes paid on income you

earned income exclusion.

residence began and ended. If you are

exclude. If all of your foreign earned

still a bona fide resident, enter

income is excluded, you cannot claim a

Line 12

“Continues” in the space for the date your

credit or deduction for the foreign taxes

bona fide residence ended.

Complete columns (a) through (d) if you

paid on that income. If only part of your

were present in the United States or any

income is excluded, you cannot claim a

Lines 2a and 2b

of its possessions in 2006. Do not include

credit or deduction for the foreign taxes

time spent in the United States or its

allocable to the excluded income. For

Physical Presence Test

possessions before your period of bona

details on how to figure the amount

fide residence or physical presence,

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

allocable to the excluded income, see

whichever applies, began or after it

citizen or resident alien who is physically

Pub. 514, Foreign Tax Credit for

ended.

present in a foreign country, or countries,

Individuals.

for at least 330 full days during any period

Column (d). Enter, in U.S. dollars, the

IRA deduction. If you claim the

of 12 months in a row. A full day means

amount of income earned in the United

exclusion, special rules apply in figuring

the 24-hour period that starts at midnight.

States on business (such as meetings or

the amount of your IRA deduction. For

conventions). Attach a statement showing

To figure the minimum of 330 full days’

details, see Pub. 590, Individual

how you determined the amount. Do not

presence, add all separate periods you

Retirement Arrangements (IRAs).

include this income on line 17. Even if you

were present in a foreign country during

live and work in a foreign country, any

the 12-month period in which those days

income earned during the time spent in

occurred. The 330 full days can be

Specific Instructions

the United States on business is

interrupted by periods when you are

considered U.S. source income and

traveling over international waters or are

Lines 1a and 1b

cannot be excluded.

otherwise not in a foreign country. See

Pub. 54 for more information and

Line 14

Bona Fide Residence Test

examples.

To meet this test, you must be one of the

Note. A nonresident alien who, with a

Enter the number of days in your

following:

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

qualifying period that fall within 2006.

•

A U.S. citizen who is a bona fide

chooses to be taxed as a resident of the

Your qualifying period is the period during

resident of a foreign country, or countries,

United States can qualify under this test if

which you meet the tax home test and

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Instructions For Form 2555-Ez - Foreign Earned Income Exclusion - Internal Revenue Service - 2006 Page 2

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