Instructions For Form 2555 - 2017 (Page 3 of 11) in pdf

you on line 12b. Acceptable entries for

earned it. (For example, include wages on

been excludable if you had received it in

family members on line 12b include child,

Form 1040, line 7.)

2016.

foster child, grandchild, parent,

If you are excluding income under this

Income is earned in the tax year you

grandparent, brother, sister, aunt, uncle,

rule, do not include this income in Part IV.

perform the services for which you receive

nephew, niece, son, daughter, spouse, or

Instead, attach a statement to Form 2555

the pay. But if you are a cash basis

other. If you check “No” on line 12a, leave

showing how you figured the exclusion.

taxpayer and, because of your employer's

line 12b blank or enter “None.”

Enter the amount that would have been

payroll periods, you received your last

excludable in 2016 on Form 2555 to the

Lines 13a and 13b. If you submitted a

salary payment for 2016 in 2017, that

left of line 45. Next to the amount enter

statement of nonresidence to the

income may be treated as earned in 2017.

“Exclusion of Income Earned in 2016.”

authorities of a foreign country in which

If you cannot treat that salary payment as

Include it in the total reported on line 45.

you earned income and the authorities

income earned in 2017, the rules

hold that you aren't subject to their income

explained under

Income earned in prior

Note. If you claimed any deduction,

tax laws by reason of nonresidency in the

year, discussed later, apply. See Pub. 54

credit, or exclusion on your 2016 return

foreign country, you aren't considered a

for more details.

that is definitely related to the 2016 foreign

bona fide resident of that country.

earned income you are excluding under

Foreign earned income for this purpose

If you submitted such a statement and

this rule, you may have to amend your

means wages, salaries, professional fees,

the authorities haven't made an adverse

2016 income tax return to adjust the

and other compensation received for

determination of your nonresident status,

amount you claimed. To do this, file Form

personal services you performed in a

you aren't considered a bona fide resident

1040X.

foreign country during the period for which

of that country.

Line 20. If you engaged in an

you meet the tax home test and either the

unincorporated trade or business in which

bona fide residence test or the physical

Part III

both personal services and capital were

presence test. It also includes noncash

material income-producing factors, a

Physical Presence Test

income (such as a home or car) and

reasonable amount of compensation for

allowances or reimbursements.

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

your personal services will be considered

citizen or resident alien who is physically

Foreign earned income doesn't include

earned income. The amount treated as

present in a foreign country, or countries,

amounts that are actually a distribution of

earned income, however, can't be more

for at least 330 full days during any period

corporate earnings or profits rather than a

than 30% of your share of the net profits

of 12 months in a row. A full day means

reasonable allowance as compensation

from the trade or business after

the 24-hour period that starts at midnight.

for your personal services. It also doesn't

subtracting the deduction for the

include the following types of income.

employer-equivalent portion of

To figure 330 full days, add all separate

Pension and annuity income (including

self-employment tax.

periods you were present in a foreign

social security benefits and railroad

country during the 12-month period shown

If capital is not an income-producing

retirement benefits treated as social

on line 16. The 330 full days can be

factor and personal services produced the

security).

interrupted by periods when you are

business income, the 30% rule does not

Interest, ordinary dividends, capital

traveling over international waters or are

apply. Your entire gross income is earned

gains, alimony, etc.

otherwise not in a foreign country. See

income.

Portion of 2016 moving expense

Pub. 54 for more information and

Line 23. List other foreign earned

deduction allocable to 2017 that is

examples.

income not included on lines 19-22. You

included in your 2017 gross income. For

Note. A nonresident alien who, with a

can write “Various” on the dotted lines to

details, see Moving Expense Attributable

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

the left of the entry space if you have other

to Foreign Earnings in 2 Years under

chooses to be taxed as a resident of the

foreign earned income from multiple

Moving Expenses in Pub. 54.

United States can qualify under this test if

sources.

Amounts paid to you by the U.S.

the time requirements are met. See Pub.

Government or any of its agencies if you

Line 25. Enter the value of meals and/or

54 for details on how to make this choice.

were an employee of the U.S.

lodging provided by, or on behalf of, your

Government or any of its agencies.

Line 16. The 12-month period on which

employer that is excludable from your

Amounts received after the end of the

the physical presence test is based must

income under section 119. To be

tax year following the tax year in which you

include 365 days, part of which must be in

excludable, the meals and lodging must

performed the services.

2017. The dates may begin or end in a

have been provided for your employer's

Amounts you must include in gross

calendar year other than 2017.

convenience and on your employer's

income because of your employer's

business premises. In addition, you must

You must enter dates in both

contributions to a nonexempt employees'

have been required to accept the lodging

spaces provided on line 16. Don't

trust or to a nonqualified annuity contract.

TIP

as a condition of your employment. If you

enter “Continues” in the space for

lived in a camp provided by, or on behalf

Income received in prior year. Foreign

the ending date.

of, your employer, the camp may be

earned income received in 2016 for

considered part of your employer's

services you performed in 2017 can be

Part IV

business premises. See Exclusion of

excluded from your 2016 gross income if,

Meals and Lodging in Pub. 54 for details.

and to the extent, the income would have

Foreign Earned Income

been excludable if you had received it in

Part VI

Enter in this part the total foreign earned

2017. To claim the additional exclusion,

you must amend your 2016 tax return. To

income you earned and received

Line 28. Enter the total reasonable

(including income constructively received)

do this, file Form 1040X.

expenses paid or incurred during the tax

during the tax year. If you are a cash basis

Income earned in prior year. Foreign

year by you, or on your behalf, for your

taxpayer, include in income on Form 1040,

earned income received in 2017 for

foreign housing and the housing of your

the foreign earned income you received

services you performed in 2016 can be

spouse and dependents if they lived with

during the tax year regardless of when you

excluded from your 2017 gross income if,

you. You can also include the reasonable

and to the extent, the income would have

Instructions for Form 2555 (2017)

-3-

Instructions For Form 2555 - 2017 Page 3

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