Instructions For Form 2555 - 2017 (Page 5 of 11) in pdf

figure the amount of the exclusion

Housing Deduction Carryover

separately for each of you. You each must

Keep for Your Records

Worksheet—Line 49

complete Part VII of your separate Forms

2555.

1. Enter the amount from your 2016 Form 2555, line 46 . . . . . . . . .

Community income. The amount of the

exclusion is not affected by the

2. Enter the amount from your 2016 Form 2555, line 48 . . . . . . . . .

income-splitting provisions of community

3. Subtract line 2 from line 1. If the result is zero, stop; enter -0- on

property laws. The sum of the amounts

line 49 of your 2017 Form 2555. You do not have any housing

figured separately for each of you is the

deduction carryover from 2016 . . . . . . . . . . . . . . . . . . . . . . . . . .

total amount excluded on a joint return.

4. Enter the amount from your 2017 Form 2555, line 47 . . . . . . . . .

Part VIII

5. Enter the amount from your 2017 Form 2555, line 48 . . . . . . . . .

If you claim either of the exclusions, you

can't claim any deduction (including

6. Subtract line 5 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

moving expenses), credit, or exclusion

that is definitely related to the excluded

7. Enter the smaller of line 3 or line 6 here and on line 49 of your

income. If only part of your foreign earned

2017 Form 2555. If line 3 is more than line 6, you cannot carry

income is excluded, you must prorate

the difference over to any future tax year

. . . . . . . . . . . . . . . . . .

such items based on the ratio that your

excludable earned income bears to your

total foreign earned income. See Pub. 54

expenses. The authorization to make the

for details on how to figure the amount

Nontaxable U.S. government allowan-

election will be provided in a future annual

allocable to the excluded income.

ces. If you or your spouse received a

notice published in the Internal Revenue

nontaxable housing allowance as a

The exclusion under section 119 and

Bulletin.

military or civilian employee of the U.S.

the housing deduction are not considered

government, see Pub. 54 for information

More than one foreign location. If

definitely related to the excluded income.

on how that allowance may affect your

you moved during the 2017 tax year and

Line 44. Report in full on Form 1040 and

housing exclusion or deduction.

incurred housing expenses in more than

related forms and schedules all

one foreign location as a result, complete

Line 34. Enter any amount your employer

deductions allowed in figuring your

the

Limit on Housing Expenses

paid or incurred on your behalf that is

adjusted gross income (Form 1040,

Worksheet, earlier, for each location in

foreign earned income included in your

line 37). Enter on line 44 the total amount

which you incurred housing expenses,

gross income for the tax year (without

of those deductions (such as the

entering the number of qualifying days

regard to section 911).

deduction for moving expenses, the

during which you lived in the applicable

Examples of employer-provided

deductible part of self-employment tax,

location on line 1. Add the results shown

amounts are:

and the expenses claimed on Schedule C

on line 4 of each worksheet, and enter the

Wages and salaries received from your

or C-EZ (Form 1040)) that aren't allowed

total on line 29b.

employer.

because they are allocable to the

If you moved during the 2017 tax

The fair market value of compensation

excluded income. This applies only to

year and are completing more

provided in kind (such as the fair rental

deductions definitely related to the

than one Limit on Housing

value of lodging provided by your

excluded earned income. See Pub. 54 for

CAUTION

Expenses Worksheet, the total number of

employer as long as it isn't excluded on

details on how to report your itemized

days entered on line 1 of your worksheets

line 25).

deductions (such as unreimbursed

may not exceed the total number of days

Rent paid by your employer directly to

employee business expenses) that are

in your qualifying period that fall within the

your landlord.

allocable to the excluded income.

2017 tax year (that is, the number of days

Amounts paid by your employer to

Part IX

entered on Form 2555, line 31).

reimburse you for housing expenses,

educational expenses of your dependents,

If line 33 is more than line 36 and line 27 is

Line 31. Enter the number of days in your

or as part of a tax equalization plan.

more than line 43, complete this part to

qualifying period that fall within your 2017

Self-employed individuals. If all of your

figure your housing deduction.

tax year. Your qualifying period is the

foreign earned income (Part IV) is

period during which you meet the tax

Line 49. Use the housing deduction

self-employment income, skip lines 34 and

home test and either the bona fide

carryover worksheet on this page to figure

35 and enter -0- on line 36. If you qualify

residence or the physical presence test.

your carryover from 2016.

for the housing deduction, be sure to

complete Part IX.

Example. You establish a tax home

One-year carryover. If the amount on

and bona fide residence in a foreign

line 46 is more than the amount on line 47,

Part VII

country on August 14, 2017. You maintain

you can carry the difference over to your

the tax home and residence until January

2018 tax year. If you cannot deduct the

Married couples. If both you and your

31, 2019. You are a calendar year

excess in 2018 because of the 2018 limit,

spouse qualify for, and choose to claim,

taxpayer. The number of days in your

you cannot carry it over to any future tax

the foreign earned income exclusion,

qualifying period that fall within your 2017

year.

tax year is 140 (August 14 through

December 31, 2017).

Instructions for Form 2555 (2017)

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Instructions For Form 2555 - 2017 Page 5

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