Instructions For Form 2555-Ez - Foreign Earned Income Exclusion

chooses to be taxed as a resident of the

its possessions in 2017. Don't include time

received for personal services you

United States can qualify under this test if

spent in the United States or its

performed in a foreign country during the

the time requirements are met. See Pub.

possessions before your period of bona

period for which you meet the tax home

54 for details on how to make this choice.

fide residence or physical presence,

test and either the bona fide residence test

whichever applies, began or after it ended.

or the physical presence test.

Line 3

Wages, salaries, tips, and bonuses.

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

Noncash income (such as a home or

amount of income earned in the United

Tax Home Test

car) if reported as income on Form 1040,

States on business (such as meetings or

line 7.

To meet this test, your tax home must be

conventions). Attach a statement showing

Allowances or reimbursements if

in a foreign country, or countries (see

how you determined the amount. Don't

reported as income on Form 1040, line 7.

Foreign

country, earlier), throughout your

include this income on line 17. Even if you

period of bona fide residence or physical

Foreign earned income doesn't

live and work in a foreign country, any

presence, whichever applies. For this

include:

income earned during the time spent in

purpose, your period of physical presence

Income earned in the United States on

the United States on business is

is the 330 full days during which you were

business ( Form 2555-EZ, line 12, column

considered U.S. source income and can't

present in a foreign country, not the 12

(d)),

be excluded.

consecutive months during which those

Amounts paid to you by the U.S.

days occurred.

Line 14

government or any of its agencies if you

were an employee of the U.S. government

Your tax home is your regular or

Enter the number of days in your

or any of its agencies,

principal place of business, employment,

qualifying period that fall within 2017. Your

Amounts that are actually a distribution

or post of duty, regardless of where you

qualifying period is the period during

of corporate earnings or profits rather than

maintain your family residence. If you don't

which you meet the tax home test and

a reasonable allowance as compensation

have a regular or principal place of

either the bona fide residence test or the

for your personal services,

business because of the nature of your

physical presence test.

Amounts received after the end of the

trade or business, your tax home is your

tax year following the tax year in which you

Example. You establish a tax home and

regular place of abode (the place where

performed the services, or

bona fide residence in a foreign country on

you regularly live).

August 14, 2017. You maintain the tax

Amounts you must include in gross

You aren't considered to have a tax

income because of your employer's

home and residence until January 31,

home in a foreign country for any period

contributions to a nonexempt employees'

2019. The number of days in your

during which your abode is in the United

trust or to a nonqualified annuity contract.

qualifying period that fall within 2017 is

States. However, if you are temporarily

140 (August 14 through December 31,

Income earned in prior year. Foreign

present in the United States, or you

2017).

earned income received in 2017 for

maintain a dwelling in the United States

services you performed in 2016 can be

(whether or not that dwelling is used by

Line 17

excluded from your 2017 gross income if,

your spouse and dependents), it doesn't

Enter the total foreign earned income you

and to the extent, the income would have

necessarily mean that your abode is in the

earned and received in 2017. Report the

been excludable if you had received it in

United States during that time.

amount in U.S. dollars using the exchange

2016.

Example. You are employed on an

rates in effect when you actually received

If you are excluding income under this

offshore oil rig in the territorial waters of a

the income. If you are a cash-basis

rule, don't include this income on line 17.

foreign country and work a 28-day on/

taxpayer, include in income on Form 1040

Instead, attach a statement to Form

28-day off schedule. You return to your

the foreign earned income you received in

2555-EZ showing how you figured the

family residence in the United States

2017 regardless of when you earned it.

exclusion. Enter the amount that would

during your off periods. You are

(For example, include wages on Form

have been excludable in 2016 on Form

considered to have an abode in the United

1040, line 7.)

2555-EZ to the left of line 18. Next to the

States and don't meet the tax home test.

amount enter “Exclusion of Income

Income is earned in the year you

You can't claim the foreign earned income

Earned in 2016.” Include it in the total

performed the services for which you

exclusion.

reported on line 18.

received the pay. But if you received your

Line 4

last wage or salary payment for 2016 in

Note. If you claimed any deduction,

2017 because of your employer's payroll

credit, or exclusion on your 2016 return

Enter your entire address including city,

period, that income can be treated as

that is definitely related to the 2016 foreign

province or state, country, and postal

earned in 2017. If you can't treat that wage

earned income you are excluding under

code. If using a military or diplomatic

or salary payment as earned in 2017, the

this rule, you may have to amend your

address, include the country in which you

rules explained later under

Income earned

2016 income tax return to adjust the

are living or stationed.

in prior year

apply. See Pub. 54 for more

amount claimed. To do this, file Form

details.

1040X.

Line 11

Note. If your total foreign earned income

Enter your tax home(s) and date(s)

entered on line 17 is over $102,100, do

established on line 11a. See

Tax Home

not file Form 2555-EZ. You must file Form

Test

under Line 3, earlier.

2555 instead.

Line 12

Foreign earned income. For purposes

Complete columns (a) through (d) if you

of this form, foreign earned income means

were present in the United States or any of

only the following types of income

Instructions for Form 2555-EZ (2017)

-3-

Instructions For Form 2555-Ez - Foreign Earned Income Exclusion - 2017 Page 3

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