Instructions For Form 2555-Ez - Foreign Earned Income Exclusion

2017

Department of the Treasury

Internal Revenue Service

Instructions for Form

2555-EZ

Foreign Earned Income Exclusion

The term “foreign country ” does not

Waiver of Time Requirements

Section references are to the Internal Revenue

Code unless otherwise noted.

include U.S. possessions or territories. It

If your tax home was in a foreign country

does not include the Antarctic region.

Future Developments

and you were a bona fide resident of, or

physically present in, a foreign country

Who Qualifies

For the latest information about

and had to leave because of war, civil

developments related to Form 2555-EZ

You can use Form 2555-EZ to claim the

unrest, or similar adverse conditions, the

and its instructions, such as legislation

foreign earned income exclusion if all of

minimum time requirements specified

enacted after they were published, go to

the following apply.

under the bona fide residence and

IRS.gov/Form2555EZ.

You meet the seven conditions listed at

physical presence tests may be waived.

the top of Form 2555-EZ.

You must be able to show that you

What's New

Your total foreign earned income

reasonably could have expected to meet

received in 2017 is reported on Form

the minimum time requirements if you had

Exclusion amount. For 2017, the

1040, line 7.

not been required to leave. Each year the

maximum exclusion has increased to

You don't have a housing deduction

IRS will publish in the Internal Revenue

$102,100.

carryover from 2016.

Bulletin a list of the only countries that

General Instructions

You meet either the bona fide residence

qualify for the waiver for the previous year

test (see the instructions for lines 1a and

and the dates they qualify. If you left one

1b, later) or the physical presence test

of the countries during the period

Do not include on Form 1040,

(see the instructions for lines 2a and 2b,

indicated, you can claim the foreign

line 64 (federal income tax

later).

earned income exclusion on Form

withheld), any taxes an employer

CAUTION

You meet the tax home test (see the

2555-EZ, but only for the number of days

withheld from your pay and paid to the

instructions for line 3, later).

you were a bona fide resident of, or

foreign country's tax authority instead of to

physically present in, the foreign country.

the U.S. Treasury.

Note. Income from working abroad as an

employee of the U.S. government doesn't

If you can claim the foreign earned

qualify for the foreign earned income

Purpose of Form

income exclusion because of the waiver of

exclusion. Don't file Form 2555-EZ.

time requirements, attach a statement to

If you qualify, you can use Form 2555-EZ

Married Couples

your return explaining that you expected to

instead of Form 2555 to figure your foreign

meet the applicable time requirement, but

earned income exclusion. You can't

If both you and your spouse qualify for,

the conditions in the foreign country

exclude more than your foreign earned

and choose to claim, the foreign earned

prevented you from the normal conduct of

income for the year.

income exclusion, figure the amount of the

business. Also, enter “Claiming Waiver” in

exclusion separately for each of you. You

General Information

the top margin on page 1 of your Form

must each complete separate Forms

2555-EZ.

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

alien living in a foreign country, you are

Additional Information

Community income. The amount of the

subject to the same U.S. income tax laws

exclusion isn't affected by the

Pub. 54 has more information about the

that apply to citizens and resident aliens

income-splitting provisions of community

bona fide residence test, the physical

living in the United States.

property laws. The sum of the amounts

presence test, and the foreign earned

figured separately for each of you is the

Note. Specific rules apply to determine if

income exclusion. You can download this

total amount excluded on a joint return.

you are a resident or nonresident alien of

publication (as well as other forms and

the United States. See Pub. 519.

publications) at IRS.gov. You can also get

Travel to Cuba

this publication by writing to: National

Foreign country. A foreign country is

Generally, if you were in Cuba in violation

Distribution Center, 1201 N. Mitsubishi

any territory under the sovereignty of a

of U.S. travel restrictions, the following

Motorway, Bloomington, IL 61705-6613.

government other than that of the United

rules apply.

States.

Any time spent in Cuba can't be

When To File

The term “foreign country” includes the

counted in determining if you qualify under

A 2017 calendar year Form 1040 is

country's territorial waters and airspace,

the bona fide residence or physical

generally due April 17, 2018.

presence test.

but not international waters and the

airspace above them. It also includes the

Any income earned in Cuba isn't

However, you are automatically

seabed and subsoil of those submarine

considered foreign earned income.

granted a 2-month extension of time to file

areas adjacent to the country's territorial

(to June 15, 2018) if, on the due date of

Note. If you performed services at the

waters over which it has exclusive rights

your return, you live outside the United

U.S. Naval Base at Guantanamo Bay, you

under international law to explore and

States and Puerto Rico and your tax home

weren't in violation of U.S. travel

exploit the natural resources.

(defined later) is outside the United States

restrictions.

and Puerto Rico. If you take this

extension, you must attach a statement to

Oct 25, 2017

Cat. No. 14623P

Instructions For Form 2555-Ez - Foreign Earned Income Exclusion - 2017

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