Filing Taxes for 2018 or Before? See If You Qualify for Form 2555-EZ

• You must have been physically present in a foreign country for at least 330 days in a 12-month period.
• You must be a US citizen or resident alien.
• You must have earned less than $103,900 in 2018 of wages in a foreign country.

How do I apply for foreign earned income exclusion?

You must attach Form 2555, Foreign Earned Income, to your Form 1040 or 1040X to claim the foreign earned income exclusion, the foreign housing exclusion or the foreign housing deduction. Do not submit Form 2555 by itself.

What are qualified housing expenses for foreign income exclusion?

You must have qualified housing expenses – Qualified foreign housing expenses include the following: rent, utilities (except for telephone, TV services, and internet), personal property insurance (such as homeowner’s or renter’s insurance), leasing fees, furniture rental, parking rental, and repairs.

Where do I put foreign earned income on 1040?

Generally, you report your foreign income where you normally report your U.S. income on your tax return. Earned income (wages) is reported on line 7 of Form 1040; interest and dividend income is reported on Schedule B; income from rental properties is reported on Schedule E, etc.

What is the IRS Form 2555 for foreign earned income?

Form 2555 Instructions – Foreign Earned Income | IRS 2555 Exclusion. IRS Form 2555 is the Foreign Earned Income Exclusion form. The form is used primarily by Expats who meet the IRS Foreign Earned Income Exclusion.

How to claim the foreign earned income exclusion?

IRS Form 2555 is used to claim the Foreign Earned Income Exclusion (FEIE). If eligible, you can also use Form 2555 to request the Foreign Housing Exclusion or Deduction. These two exclusions help US expats capitalize on huge tax savings when working abroad. You can exclude up to over $100,000 foreign earned income from US income taxes.

Do you have to file Form 2555 if you are US citizen?

If you are a U.S. citizen living and working abroad, you may need to file Form 2555. However, there are a few requirements to qualify for foreign income exclusion benefits. You must: Meet the tax home test: Your tax home is the location where you indefinitely work.

Do you have to include housing exclusion on Form 2555?

In addition, filers may also qualify for housing exclusion. In order to claim the exclusion, the Taxpayer must include the income and the proper form. Just “excluding” the income is insufficient, and could lead to an IRS audit and loss of the exclusion.