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present in the United States, or you

Department of the Treasury maintain a dwelling in the United States
(whether or not that dwelling is used by
Internal Revenue Service your spouse and dependents), it does not
necessarily mean that your abode is in the
United States during that time.
Instructions for Form 2555 Example. You are employed on an
offshore oil rig in the territorial waters of a
Foreign Earned Income foreign country and work a 28-day
on/28-day off schedule. You return to your
Section references are to the Internal Revenue Code. family residence in the United States
during your off periods. You are
considered to have an abode in the United
General Instructions amount of your foreign earned income.
Also, use it to claim the housing exclusion
States and do not meet the tax home test.
You may not claim either of the exclusions
or deduction. You may not exclude or or the housing deduction.
Paperwork Reduction Act deduct more than your foreign earned
Foreign country.—A foreign country is any
Notice income for the tax year.
territory (including the air space, territorial
We ask for the information on this form to Note: Specific rules apply to determine if waters, seabed, and subsoil) under the
carry out the Internal Revenue laws of the you are a resident or nonresident alien of sovereignty of a government other than the
United States. You are required to give us the United States. Get Pub. 519, U.S. Tax United States. It does not include U.S.
the information. We need it to ensure that Guide for Aliens, for details. possessions or territories.
you are complying with these laws and to
allow us to figure and collect the right Who Qualifies Violation of Travel Restrictions
amount of tax. Generally, if you were in a foreign country
You qualify for the tax benefits available to
The time needed to complete and file taxpayers who have foreign earned income in violation of U.S. travel restrictions, the
this form will vary depending on individual if you meet the tax home test (defined following rules apply: (1) any time spent in
circumstances. The estimated average time later) and you are one of the following: that country may not be counted in
is: Recordkeeping, 2 hr., 10 min.; determining if you qualify under the bona
● A U.S. citizen who is a bona fide
Learning about the law or the form, 26 fide residence or physical presence test;
resident of a foreign country, or countries,
min.; Preparing the form, 1 hr., 50 min.; (2) any income earned in that country is
for an uninterrupted period that includes a
and Copying, assembling, and sending not considered foreign earned income; and
complete tax year (bona fide residence
the form to the IRS, 49 min. (3) any housing expenses in that country
test), or
If you have comments concerning the (or housing expenses for your spouse or
● A U.S. resident alien who is a citizen or dependents in another country while you
accuracy of these time estimates or
national of a country with which the United were in that country) are not considered
suggestions for making this form more
States has an income tax treaty in effect qualified housing expenses. U.S. travel
simple, we would be happy to hear from
and who is a bona fide resident of a restrictions currently apply to Cuba, Iraq,
you. You can write to both the IRS and the
foreign country, or countries, for an and Libya.
Office of Management and Budget at the
uninterrupted period that includes a
addresses listed in the Instructions for
complete tax year (bona fide residence
Form 1040.
test), or Additional Information
● A U.S. citizen or a U.S. resident alien Pub. 54, Tax Guide for U.S. Citizens and
Items To Note who is physically present in a foreign Resident Aliens Abroad, contains more
New Form 2555-EZ.—You may be able to country, or countries, for at least 330 full information about the bona fide residence
use Form 2555-EZ, Foreign Earned days during any period of 12 months in a test, the physical presence test, the foreign
Income Exclusion, if none of your foreign row (physical presence test). earned income exclusion, and the housing
earned income was from self-employment, exclusion and deduction. You can get the
Note: If your only earned income from publication from most U.S. embassies and
your total foreign earned income did not work abroad is pay you received from the
exceed $70,000, you do not have any consulates or by writing to: Eastern Area
U.S. Government as its employee, you do Distribution Center, P.O. Box 25866,
business or moving expenses, and you do not qualify for either of the exclusions or
not claim the housing exclusion. For more Richmond, VA 23286-8107.
the housing deduction. Do not file Form
details, get Form 2555-EZ and its separate 2555.
instructions.
Waiver of Time Requirements
Tax home test.—Your tax home must be If your tax home was in a foreign country
Foreign taxes withheld from your pay.— in a foreign country, or countries,
Do not include on Form 1040, line 54 and you were a bona fide resident of, or
throughout your period of bona fide physically present in, a foreign country and
(Federal income tax withheld), any taxes a residence or physical presence, whichever
foreign employer withheld from your pay had to leave because of war, civil unrest,
applies. For this purpose, your period of or similar adverse conditions, the minimum
and paid to the foreign country’s tax physical presence is the 330 full days
authority instead of the U.S. Treasury. time requirements specified under the
during which you were present in a foreign bona fide residence and physical presence
Violation of travel restrictions.—The IRS country, not the 12 consecutive months tests may be waived. You must be able to
recently determined that Cambodia, North during which those days occurred. show that you reasonably could have
Korea, and Vietnam were incorrectly listed Your tax home is your regular or expected to meet the minimum time
as countries to which U.S. travel principal place of business, employment, requirements if you had not been required
restrictions applied. Also, beginning August or post of duty, regardless of where you to leave. If you left one of the countries
2, 1990, U.S. travel restrictions apply to maintain your family residence. If you do listed on page 4 during the period
Iraq. not have a regular or principal place of indicated, you can claim the tax benefits
business because of the nature of your on Form 2555, but only for the number of
Purpose of Form trade or business, your tax home is your days you were a bona fide resident of, or
regular place of abode (the place where physically present in, the foreign country.
If you are a U.S. citizen or a U.S. resident
you regularly live). If you can claim either of the exclusions
alien living in a foreign country, you are
subject to the same U.S. income tax laws You are not considered to have a tax or the housing deduction because of the
that apply to citizens and resident aliens home in a foreign country for any period waiver of time requirements, attach a
living in the United States. But if you during which your abode is in the United statement to your return explaining that
qualify, use Form 2555 to exclude a limited States. However, if you are temporarily you expected to meet the applicable time
Cat. No. 11901A
requirement, but the conditions in the
foreign country prevented you from the
Specific Instructions Part III
normal conduct of business. Also, write Enter in this part the total foreign earned
“Claiming Waiver” in the top margin on Part I income you earned and received
page 1 of your 1992 Form 2555. (including income constructively received)
Bona Fide Residence Test during the tax year. If you are a cash basis
This test applies only to U.S. citizens and taxpayer, report on Form 1040 all income
Where To Attach you received during the tax year regardless
U.S. resident aliens who are citizens or
Attach Form 2555 to the front of your Form nationals of a country with which the of when you earned it.
1040. Do not attach it in the order of the United States has an income tax treaty in Income is earned in the tax year you
“Attachment Sequence No.” shown in the effect. Get Pub. 901, U.S. Tax Treaties, for perform the services for which you receive
upper right corner of the form. a list of these countries. the pay. But if you are a cash basis
To qualify under this test, you must be a taxpayer and, because of your employer’s
Where To File bona fide resident of a foreign country, or payroll periods, you received your last
countries, for an uninterrupted period that salary payment for 1991 in 1992, that
Send your return to the Internal Revenue income may be treated as earned in 1992.
Service Center, Philadelphia, PA 19255. includes a complete tax year (January 1–
December 31, if you file a calendar year If you cannot treat that salary payment as
return). income earned in 1992, the rules explained
When To File later under Income earned in prior year
No specific rule determines if you are a apply. See Pub. 54 for more details.
A 1992 calendar year Form 1040 is bona fide resident of a foreign country
generally due April 15, 1993. because the determination involves your Foreign earned income for this purpose
However, you are automatically granted intention about the length and nature of means wages, salaries, professional fees,
a 2-month extension of time to file (to June your stay. Evidence of your intention may and other compensation received for
15, 1993, for a 1992 calendar year return) be your words and acts. If these conflict, personal services you performed in a
if, on the due date of your return, you live your acts carry more weight than your foreign country during the period for which
outside the United States and Puerto Rico, words. Generally, if you go to a foreign you meet the tax home test and either the
AND your tax home (defined earlier) is country for a definite, temporary purpose bona fide residence test or the physical
outside the United States and Puerto Rico. and return to the United States after you presence test. It also includes noncash
If you take this extension, you must attach accomplish it, you are not a bona fide income (such as a home or car) and
a statement to your return explaining that resident of the foreign country. If allowances or reimbursements.
you meet these two conditions. accomplishing the purpose requires an Foreign earned income does not include
The automatic 2-month extension also extended, indefinite stay, and you make amounts that are actually a distribution of
applies to paying the tax. However, interest your home in the foreign country, you may corporate earnings or profits rather than a
is charged on the unpaid tax from the be a bona fide resident. See Pub. 54 for reasonable allowance as compensation for
regular due date (April 15 for a calendar more information and examples. your personal services. It also does not
year return) until it is paid. Lines 4a and 4b.—If you submitted a include the following types of income:
Special extension of time.—If you plan to statement to the authorities of a foreign ● Pension and annuity income (including
take the foreign earned income exclusion country in which you earned income that social security and railroad retirement
and/or the housing exclusion or deduction, you are not a resident of that country, and benefits treated as social security).
but do not expect to qualify until after the the authorities hold that you are not ● Interest, dividends, capital gains,
end of the automatic 2-month extension subject to their income tax laws as a alimony, etc.
resident, you are not considered a bona
period described earlier, you may apply for ● Portion of 1991 moving expense
an extension to a date after you expect to fide resident of that country.
deduction allocable to 1992 that is
qualify. If you submitted such a statement and included in your 1992 gross income. For
To apply for this extension, complete the authorities have not made an adverse details, see Recapture of Moving
and file Form 2350, Application for determination of your nonresident status, Expense Deduction in the Instructions for
Extension of Time To File U.S. Income Tax you are not considered a bona fide Form 3903F or under Moving Expenses in
Return, with the Internal Revenue Service resident of that country. Pub. 54.
Center, Philadelphia, PA 19255, before the ● Amounts paid to you by the U.S.
due date of your return. Interest is charged Part II Government or any of its agencies if you
on the tax not paid by the regular due date were an employee of the U.S. Government
as explained above. Physical Presence Test or any of its agencies.
Choosing the Exclusion(s) To qualify under this test, you must be a ● Amounts received after the end of the
U.S. citizen or resident alien who is tax year following the tax year in which you
To choose either of the exclusions, physically present in a foreign country, or performed the services.
complete the appropriate parts of Form countries, for at least 330 full days during
2555 and file it with your Form 1040 or ● Amounts you must include in gross
any period of 12 months in a row. A full
Form 1040X, Amended U.S. Individual income because of your employer’s
day means the 24-hour period that starts
Income Tax Return. contributions to a nonexempt employees’
at midnight.
trust or to a nonqualified annuity contract.
Once you choose to claim an exclusion, To figure the minimum of 330 full days’
that choice remains in effect for that year Note: If you received income in 1992 for
presence, add all separate periods you
and all future years unless it is revoked. To services performed before 1963, you may
were present in a foreign country during
revoke your choice, you must attach a be able to exclude the income if a right to
the 12-month period shown on line 7. The
statement to your return for the first year receive it existed on March 12, 1962. For
330 full days may be interrupted by
you do not wish to claim the exclusion(s). more information, write to:
periods when you are traveling over
If you revoke your choice, you may not Internal Revenue Service
international waters or are otherwise not in
claim the exclusion(s) for your next 5 tax Attn: IN:C:TPS
a foreign country. See Pub. 54 for more
years without the approval of the Internal 950 L’Enfant Plaza South, S.W.
information and examples.
Revenue Service. See Pub. 54 for more Washington, DC 20024
Note: A nonresident alien who, with a U.S.
information. Income received in prior year.—Foreign
citizen or U.S. resident alien spouse,
Earned income credit.—If you claim either earned income received in 1991 for
chooses to be taxed as a resident of the
of the exclusions or the housing deduction, services you performed in 1992 may be
United States may qualify under this test if
you cannot take the earned income credit. excluded from your 1991 gross income if,
the time requirements are met. See Pub.
and to the extent, the income would have
54 for details on how to make this choice.
been excludable if you had received it in
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1992. To claim the additional exclusion, furniture and accessories, residential Line 19.—Enter the number of days in your
you must amend your 1991 tax return. To parking, and household repairs. You may qualifying period that fall within your 1992
do this, file Form 1040X. also include the fair rental value of housing tax year. Your qualifying period is the
Income earned in prior year.—Foreign provided by, or on behalf of, your employer period during which you meet the tax
earned income received in 1992 for if you have not excluded it on line 16. home test and either the bona fide
services you performed in 1991 may be Do not include deductible interest and residence test or the physical presence
excluded from your 1992 gross income if, taxes, any amount deductible by a test.
and to the extent, the income would have tenant-stockholder in connection with Example. You establish a tax home and
been excludable if you had received it in cooperative housing, the cost of buying or bona fide residence in a foreign country on
1991. Do not include this income in Part III. improving a house, principal payments on August 14, 1992. You maintain the tax
If you are excluding income under this a mortgage, or depreciation on the house. home and residence until January 31,
rule, attach a statement to Form 2555 Also, do not include the cost of domestic 1994. You are a calendar year taxpayer.
showing how you figured the exclusion. labor, pay television, or the cost of buying The number of days in your qualifying
Enter the amount that would have been furniture or accessories. period that fall within your 1992 tax year is
excludable in 1991 on Form 2555 to the Include expenses for housing only during 140 (August 14 through December 31,
left of line 39. Next to the amount write periods for which: 1992).
“Exclusion of Income Earned in 1991.” ● The value of your housing is not Nontaxable U.S. Government
Include it in the total reported on line 39. excluded from gross income under section allowances.—If you or your spouse
Note: If you claimed any deduction, credit, 119 (unless you maintained a second received a nontaxable housing allowance
or exclusion on your 1991 return that is foreign household), and as a military or civilian employee of the
definitely related to the 1991 foreign U.S. Government, see Pub. 54 for
● You meet the tax home test and either information on how that allowance may
earned income you are excluding under the bona fide residence test or physical
this rule, you may have to amend your affect your housing exclusion or deduction.
presence test.
1991 income tax return to adjust the Line 22.—Enter any amount your employer
amount you claimed. To do this, file Form Second foreign household.—If you paid or incurred on your behalf that is
1040X. maintained a separate foreign household foreign earned income included in your
for your spouse and dependents at a place gross income for the tax year (without
Line 11.—If you engaged in an other than your tax home because the
unincorporated trade or business in which regard to section 911).
living conditions at your tax home were
both personal services and capital were dangerous, unhealthful, or otherwise Examples of employer-provided amounts
material income-producing factors, a adverse, you may include the expenses of are:
reasonable amount of compensation for the second household on line 18. ● Wages and salaries received from your
your personal services will be considered employer.
earned income. The amount treated as Married couples.—If both you and your
earned income, however, may not be more spouse qualify for the tax benefits of Form ● The fair market value of compensation
than 30% of your share of the net profits 2555, you each may choose to exclude or provided in kind (such as the fair rental
from the trade or business after deduct part of your foreign housing value of lodging provided by your employer
subtracting the deduction for one-half of expenses. as long as it is not excluded on line 16).
self-employment tax. If you and your spouse lived in the same ● Rent paid by your employer directly to
If capital is not an income-producing foreign household and file a joint return, your landlord.
factor and personal services produced the the total qualified expenses for the ● Amounts paid by your employer to
business income, the 30% rule does not household may be claimed on either your reimburse you for housing expenses,
apply. Your entire gross income is earned Form 2555 or your spouse’s Form 2555. educational expenses of your dependents,
income. However, if you and your spouse have or as part of a tax equalization plan.
different periods of residence or presence
Line 16.—Enter the value of meals and/or and the one with the shorter period claims Self-employed individuals.—If all of your
lodging provided by, or on behalf of, your the expenses on his or her Form 2555, foreign earned income (Part III) is
employer that is excludable from your only the qualified expenses paid or self-employment income, skip lines 22
income under section 119. To be incurred during the shorter period may be through 24 and enter zero on line 25.
excludable, the meals and lodging must claimed. If you file separate returns, the
have been provided for your employer’s total qualified housing expense may either Part V
convenience and on your employer’s be claimed on your Form 2555 or your
business premises. In addition, you must Married couples.—If both you and your
spouse’s Form 2555, or you each may spouse qualify for, and choose to claim,
have been required to accept the lodging claim part of the expenses on your
as a condition of your employment. If you the foreign earned income exclusion, the
separate Forms 2555. amount of the exclusion is figured
lived in a camp provided by, or on behalf
of, your employer, the camp may be If you and your spouse lived in separate separately for each of you. You each must
considered to be part of your employer’s foreign households, you each may claim complete Part V of your separate Forms
business premises. See Pub. 54 for details. qualified expenses for your own household 2555.
on your separate Forms 2555 only if (1) Community income.—The amount of the
your tax homes were not within a exclusion is not affected by the
Part IV reasonable commuting distance of each income-splitting provisions of community
Line 18.—Enter the total reasonable other, and (2) each spouse’s household property laws. The sum of the amounts
expenses paid or incurred during the tax was not within a reasonable commuting figured separately for each of you is the
year by you, or on your behalf, for your distance of the other spouse’s tax home. total amount excluded on a joint return.
foreign housing and the housing of your This is true even if you and your spouse
spouse and dependents if they lived with file a joint return. If the requirements in (1)
you. You may also include the reasonable and (2) above are not met, only one of you Part VI
expenses of a second foreign household may claim the housing exclusion or If you claim either of the exclusions, you
(defined later). Housing expenses are deduction. This is true even if you and your may not claim any deduction (including
considered reasonable to the extent they spouse file separate returns. If your spouse moving expenses), credit, or exclusion that
are not lavish or extravagant under the qualifies for, but does not claim, a housing is definitely related to the excluded
circumstances. exclusion or deduction, you may include income. If only part of your foreign earned
on your Form 2555 the qualified expenses income is excluded, you must prorate such
Housing expenses include rent, utilities
of your spouse’s household if the home items based on the ratio that your
(other than telephone charges), real and
qualifies as a second foreign household. excludable earned income bears to your
personal property insurance, nonrefundable
fees paid to obtain a lease, rental of total foreign earned income. See Pub. 54

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for details on how to figure the amount
allocable to the excluded income. Housing Deduction Carryover Worksheet—Line 45 (keep for your records)
The exclusion under section 119 and the
housing deduction are not considered 1. Enter the amount from your 1991 Form 2555, line 40 1
definitely related to the excluded income. 2. Enter the amount from your 1991 Form 2555, line 44 2
Line 38.—Report in full on Form 1040 and 3. Subtract line 2 from line 1. If the result is zero, stop here; enter -0- on
related forms and schedules all deductions
allowed in figuring your adjusted gross line 45 of your 1992 Form 2555. You do not have any housing deduction
income (Form 1040, line 31). Enter on line carryover from 1991 3
38 the total amount of those deductions 4. Enter the amount from your 1992 Form 2555, line 43 4
(such as the deduction for one-half of
5. Enter the amount from your 1992 Form 2555, line 44 5
self-employment tax) that are not allowed
because they are allocable to the excluded 6. Subtract line 5 from line 4 6
income. This applies only to deductions 7. Enter the smaller of line 3 or line 6 here and on line 45 of your 1992
definitely related to the excluded earned Form 2555. If line 3 is more than line 6, you may not carry the difference
income. See Pub. 54 for details on how to over to any future tax year © 7
report your itemized deductions (such as
unreimbursed employee business
expenses) that are allocable to the
excluded income. List of Qualifying Countries and Time Periods—Waiver of Time Requirements
IRA deduction.—The IRA deduction is not
definitely related to the excluded income. Time Periods
However, special rules apply in figuring the
amount of your IRA deduction. For details, Country Beginning and Ending
get Pub. 590, Individual Retirement
Afghanistan April 23, 1979 Still in effect
Arrangements (IRAs).
Bahrain January 17, 1991 April 9, 1991
Foreign taxes.—You may not take a credit
or deduction for foreign income taxes paid Bosnia and Hercegovina April 7, 1992 Still in effect
or accrued on income that is excluded China June 7, 1989 August 9, 1989
under either of the exclusions. Colombia August 29, 1989 November 22, 1989
If all of your foreign earned income is Ethiopia April 25, 1991 July 9, 1991
excluded, you may not claim a credit or Haiti October 29, 1991 Still in effect
deduction for the foreign taxes paid or Iran September 1, 1978 Still in effect
accrued on that income. Iraq August 3, 1990 April 9, 1991
If only part of your income is excluded, Jordan December 26, 1990 April 1, 1991
you may not claim a credit or deduction for
Kuwait August 3, 1990 April 9, 1991
the foreign taxes allocable to the excluded
income. Get Pub. 514, Foreign Tax Credit Lebanon August 31, 1979 Still in effect
for Individuals, for details on how to figure Liberia June 1, 1990 October 21, 1990
the amount allocable to the excluded Libya August 31, 1979 August 31, 1992
income. Mauritania January 13, 1991 April 1, 1991
Morocco January 11, 1991 March 22, 1991
Part VII Oman January 17, 1991 April 9, 1991
If an amount is entered on line 26, Pakistan January 15, 1991 April 11, 1991
complete this part to figure your housing Panama May 12, 1989 November 6, 1989
deduction. Also, complete this part to Philippines November 15, 1990 December 14, 1990
figure your housing deduction carryover
from 1991. Qatar January 17, 1991 April 9, 1991
Saudi Arabia January 17, 1991 April 9, 1991
One-year carryover.—If the amount on
line 40 is more than the amount on line Somalia December 21, 1990 July 5, 1991
43, you may carry the difference over to Sudan December 26, 1990 April 8, 1991
your 1993 tax year. If you cannot deduct Tanzania January 25, 1991 March 16, 1991
the excess in 1993 because of the 1993 United Arab Emirates January 17, 1991 April 9, 1991
limit, you may not carry it over to any Yemen August 18, 1990 March 29, 1991
future tax year.

$
July 4, 1991 August 8, 1991
Yugoslavia September 19, 1991 December 25, 1991
June 13, 1992 Still in effect
Zaire September 24, 1991 Still in effect

Note: The above list reflects the changes made after the 1991 Form 2555 Instructions were
printed, up to and including August 31, 1992.

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