If you qualify, you can use Form 2555 to figure your foreign earned income exclusion and your housing exclusion or deduction. You cannot exclude or deduct more than your foreign earned income for the year. General Information

Can you deduct foreign earned income on Form 2555?

If you qualify, you can use Form 2555 to figure your foreign earned income exclusion and your housing exclusion or deduction. You cannot exclude or deduct more than the amount of your foreign earned income for the year.

Do you have to have a bona fide residence to file Form 2555?

You meet either the bona fide residence test or the physical presence test (discussed later). However, see COVID-19 Emergency Relief, later. Note. Income from working abroad as an employee of the U.S. Government does not qualify for either of the exclusions or the housing deduction. Don’t file Form 2555. Tax home test.

When is the deadline to file FEIE Form 2555?

Deadline: June 15th. If you are living or working abroad as a US expat, you may have heard of the Foreign Earned Income Exclusion, Form 2555 or the FEIE. It’s a cool benefit to take advantage of if you qualify. It can help you save tons of money and reduce your tax bill to the IRS in the United States.

What is the foreign earned income exclusion Form 2555?

Understanding Form 2555 (the Foreign Earned Income Exclusion and the Foreign Housing Exclusion) is extremely important because it allows U.S. tax payers living and working abroad to exclude all or most of their foreign earned income. Today we will go through this form as part of a series of blogs and videos aimed at giving […]

Can You claim foreign earned income on Form 2555?

Income you have earned from working abroad as an employee of the U.S. Government or any of its agencies does not qualify. To claim your foreign earned as well as any related deductions or exclusions, you can complete tax form 2555.

Is there a limit to foreign earned income on Form 2555?

The exact limit changes each year. For filing Form 2555 to take the Foreign Earned Income Exclusion in 2021 (tax year 2020), the limit is $107,600. That means that if you make $107,600 or less abroad, while meeting the tests mentioned above, you can take all of it off your taxes using Form 2555.

When does interest accrue on Form 2555?

Do note, however, that if you owe any tax after taking the Foreign Earned Income Exclusion with IRS Form 2555, it will start accruing interest starting on April 15. *Note the normal filing deadline for tax year 2020 for all individuals has been delayed to May 17, 2021. However, the deadline for citizens abroad is still June 15.

Can a married couple claim FEIE on the IRS Form 2555?

As a married couple, IRS Form 2555 can be a bit more complex. If both spouses qualify independently for the FEIE, they each can claim up to the yearly maximum amount on their separate 2555 forms. If only one spouse qualifies, only that spouse can claim the exclusion and only on their own income.