Instructions for IRS Form 2555 Foreign Earned Income

IRS Form 2555 Foreign Earned Income

This document contains official instructions for IRS Form 2555 , Foreign Earned Income - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 2555 is available for download through this link.

FAQ

Q: What is IRS Form 2555?A: IRS Form 2555 is a form used to report foreign earned income and claim the foreign earned income exclusion.

Q: Who needs to file IRS Form 2555?A: You need to file IRS Form 2555 if you have foreign earned income and want to claim the foreign earned income exclusion.

Q: What is foreign earned income?A: Foreign earned income is the income you earn while living and working in a foreign country.

Q: What is the foreign earned income exclusion?A: The foreign earned income exclusion is a tax benefit that allows you to exclude a certain amount of your foreign earned income from your taxable income.

Q: How do I calculate the foreign earned income exclusion?A: To calculate the foreign earned income exclusion, you need to meet certain requirements and fill out the necessary forms. The exclusion amount is adjusted annually for inflation.

Q: Can I claim the foreign earned income exclusion if I am self-employed?A: Yes, self-employed individuals can claim the foreign earned income exclusion.

Q: Can I claim the foreign earned income exclusion if I work for the US government?A: No, if you work for the US government, the foreign earned income exclusion does not apply.

Q: Do I still need to file a tax return if I claim the foreign earned income exclusion?A: Yes, even if you claim the foreign earned income exclusion, you still need to file a tax return and attach IRS Form 2555.

Q: Are there any other tax benefits for living and working abroad?A: Yes, in addition to the foreign earned income exclusion, there are other tax benefits available, such as the foreign housing exclusion or deduction.