Instructions For Form 2555 - 2017 printable pdf download

2017

Department of the Treasury

Internal Revenue Service

Instructions for Form 2555

Foreign Earned Income

Section references are to the Internal Revenue

airspace above them. It also includes the

during your off periods. You are

Code unless otherwise noted.

seabed and subsoil of those submarine

considered to have an abode in the United

areas adjacent to the country's territorial

States and don't meet the tax home test.

Future Developments

waters over which it has exclusive rights

You can't claim either of the exclusions or

under international law to explore and

the housing deduction.

For the latest information about

exploit the natural resources.

developments related to Form 2555 and

Travel to Cuba

its instructions, such as legislation

The term “foreign country” doesn't

Generally, if you were in Cuba in violation

enacted after they were published, go to

include U.S. possessions or territories. It

of U.S. travel restrictions, the following

doesn't include the Antarctic region.

rules apply.

What's New

Any time spent in Cuba can't be

Who Qualifies

counted in determining if you qualify under

You qualify for the tax benefits available to

Exclusion amount. For 2017, the

the bona fide residence or physical

taxpayers who have foreign earned

maximum exclusion has increased to

presence test.

income if both of the following apply.

$102,100.

Any income earned in Cuba isn't

You meet the tax home test (discussed

considered foreign earned income.

General Instructions

later).

Any housing expenses in Cuba (or

You meet either the bona fide residence

housing expenses for your spouse or

test or the physical presence test,

Don't include on Form 1040,

dependents in another country while you

discussed later.

line 64 (federal income tax

were in Cuba) aren't considered qualified

withheld), any taxes an employer

housing expenses.

Note. Income from working abroad as an

CAUTION

withheld from your pay and paid to the

employee of the U.S. Government does

foreign country's tax authority instead of to

Note. If you performed services at the

not qualify for either of the exclusions or

the U.S. Treasury.

U.S. Naval Base at Guantanamo Bay, you

the housing deduction. Don't file Form

were not in violation of U.S. travel

2555.

restrictions.

Purpose of Form

Tax home test. To meet this test, your

Waiver of Time Requirements

If you qualify, you can use Form 2555 to

tax home must be in a foreign country, or

figure your foreign earned income

countries (see

Foreign

country, earlier),

If your tax home was in a foreign country

exclusion and your housing exclusion or

throughout your period of bona fide

and you were a bona fide resident of, or

deduction. You cannot exclude or deduct

residence or physical presence,

physically present in, a foreign country

more than your foreign earned income for

whichever applies. For this purpose, your

and had to leave because of war, civil

the year.

period of physical presence is the 330 full

unrest, or similar adverse conditions, the

days during which you were present in a

minimum time requirements specified

You may be able to use Form 2555-EZ

foreign country, not the 12 consecutive

under the bona fide residence and

if you didn't have any self-employment

months during which those days occurred.

physical presence tests may be waived.

income for the year, your total foreign

You must be able to show that you

Your tax home is your regular or

earned income did not exceed $102,100,

reasonably could have expected to meet

principal place of business, employment,

you don't have any business or moving

the minimum time requirements if you

or post of duty, regardless of where you

expenses, and you don't claim the housing

hadn't been required to leave. Each year

maintain your family residence. If you don't

exclusion or deduction. For more details,

the IRS will publish in the Internal

have a regular or principal place of

see Form 2555-EZ and its separate

Revenue Bulletin a list of the only

business because of the nature of your

instructions.

countries that qualify for the waiver for the

trade or business, your tax home is your

previous year and the dates they qualify. If

regular place of abode (the place where

General Information

you left one of the countries during the

you regularly live).

period indicated, you can claim the tax

If you are a U.S. citizen or a U.S. resident

You aren't considered to have a tax

benefits on Form 2555, but only for the

alien living in a foreign country, you are

home in a foreign country for any period

number of days you were a bona fide

subject to the same U.S. income tax laws

during which your abode is in the United

resident of, or physically present in, the

that apply to citizens and resident aliens

States. However, if you are temporarily

foreign country.

living in the United States.

present in the United States, or you

maintain a dwelling in the United States

Note. Specific rules apply to determine if

If you can claim either of the exclusions

(whether or not that dwelling is used by

you are a resident or nonresident alien of

or the housing deduction because of the

your spouse and dependents), it doesn't

the United States. See Pub. 519.

waiver of time requirements, attach a

necessarily mean that your abode is in the

statement to your return explaining that

Foreign country. A foreign country is

United States during that time.

you expected to meet the applicable time

any territory under the sovereignty of a

requirement, but the conditions in the

government other than that of the United

Example. You are employed on an

foreign country prevented you from the

States.

offshore oil rig in the territorial waters of a

normal conduct of business. Also, enter

foreign country and work a 28-day on/

The term “foreign country” includes the

“Claiming Waiver” in the top margin on

28-day off schedule. You return to your

country's territorial waters and airspace,

page 1 of Form 2555.

family residence in the United States

but not international waters and the

Oct 25, 2017

Cat. No. 11901A

Instructions For Form 2555 - 2017

Related Articles

Related forms

Related Categories