Department of the Treasury

Internal Revenue Service

Instructions for Form 2555-EZ

Foreign Earned Income Exclusion
Section references are to the Internal Revenue Code.

Paperwork Reduction other than the United States. It does not

include U.S. possessions or territories.
considered foreign earned income. See
page 4 for a list of countries to which
Act Notice Note: Specific rules apply to deter mine U.S. travel restrictions apply.
We ask for the information on this form if you are a resident or nonresident alien
to carry out the Internal Revenue laws of of the United States. Get Pub. 519, U.S. Additional Information
the United States. You are required to Tax Guide for Aliens, for details.
Pub. 54, Tax Guide for U.S. Citizens and
give us the information. We need it to Resident Aliens Abroad, contains more
ensure that you are complying with Who Qualifies information about the bona fide
these laws and to allow us to figure and residence test, the physical presence
collect the right amount of tax. You may use Form 2555-EZ to claim the
foreign earned income exclusion if all test, and the foreign earned income
The time needed to complete and file five of the following apply: exclusion. You can get this publication
this form will vary depending on from most U.S. embassies and
individual circumstances. The estimated 1. You meet the seven conditions
consulates or by writing to either:
average time is: listed at the top of Form 2555-EZ.
Eastern Area Distribution Center, P.O.
2. Your total foreign earned income Box 25866, Richmond, VA 23286-8107;
Recordkeeping 26 min. received in 1993 is reported on Form or Western Area Distribution Center,
Learning about the 1040, line 7. Rancho Cordova, CA 95743-0001,
law or the form 17 min. 3. You do not have a housing whichever is closer.
Preparing the form 40 min. deduction carryover from 1992.
Copying, assembling, 4. You meet either the bona fide Waiver of Time
and sending the form residence test (see the instructions for Requirements
to the IRS 35 min. lines 1a and 1b on page 2) or the
physical presence test (see the If your tax home was in a foreign
If you have comments concerning the instructions for lines 2a and 2b on country and you were a bona fide
accuracy of these time estimates or page 2). resident of, or physically present in, a
suggestions for making this form more foreign country and had to leave
simple, we would be happy to hear from 5. You meet the tax home test (see
the instructions for line 3 on page 2). because of war, civil unrest, or similar
you. You can write to both the IRS and adverse conditions, the minimum time
the Office of Management and Budget Note: If your only ear ned income from requirements specified under the bona
at the addresses listed in the work abroad is pay you received from fide residence and physical presence
Instructions for Form 1040. the U.S. Gover nment as its employee, tests may be waived. You must be able
you do not qualify for the foreign ear ned to show that you reasonably could have
income exclusion. Do not file For m expected to meet the minimum time
General Instructions 2555-EZ. requirements if you had not been
Married Couples required to leave. If you left one of the
Item To Note countries listed on page 4 during the
Do not include on Form 1040, line 54 If both you and your spouse qualify for, period indicated, you can claim the
(Federal income tax withheld), any taxes and choose to claim, the foreign earned foreign earned income exclusion on
a foreign employer withheld from your income exclusion, figure the amount of Form 2555-EZ, but only for the number
pay and paid to the foreign country’s tax the exclusion separately for each of you. of days you were a bona fide resident
authority instead of to the U.S. Treasury. You each must complete separate of, or physically present in, the foreign
Forms 2555-EZ. country.
Purpose of Form Community income.—The amount of If you can claim the foreign earned
the exclusion is not affected by the income exclusion because of the waiver
If you qualify, you may use Form income-splitting provisions of community
2555-EZ instead of Form 2555, Foreign of time requirements, attach a statement
property laws. The sum of the amounts to your return explaining that you
Earned Income, to exclude a limited figured separately for each of you is the
amount of your foreign earned income. expected to meet the applicable time
total amount excluded on a joint return. requirement, but the conditions in the
You may not exclude more than your
foreign earned income for the year. foreign country prevented you from the
Violation of Travel normal conduct of business. Also, write
Remember, U.S. citizens and U.S. “Claiming Waiver” in the top margin on
resident aliens living in a foreign country Restrictions
page 1 of your 1993 Form 2555-EZ.
are subject to the same U.S. income tax Generally, if you were in a foreign
laws that apply to citizens and resident country in violation of U.S. travel
aliens living in the United States. restrictions, the following rules apply: Where To Attach
Foreign country.—A foreign country is (1) any time spent in that country may Attach Form 2555-EZ to the front of
any territory (including the air space, not be counted in determining if you your Form 1040. Do not attach it in the
territorial waters, seabed, and subsoil) qualify under the bona fide residence or order of the “Attachment Sequence No.”
under the sovereignty of a government physical presence test; and (2) any shown in the upper right corner of the
income earned in that country is not form.

Cat. No. 14623P

Where To File you exclude. If all of your foreign earned considered a bona fide resident of that
income is excluded, you may not claim a country.
Send your return to the Internal Revenue credit or deduction for the foreign taxes
Service Center, Philadelphia, PA 19255. Line 1b.—If you answered “Yes” on line
paid on that income. If only part of your 1a, enter the dates your bona fide
income is excluded, you may not claim a residence began and ended. If you are
When To File credit or deduction for the foreign taxes still a bona fide resident, enter
Form 1040 is generally due April 15, allocable to the excluded income. For “Continues” in the space for the date
1994. details on how to figure the amount your bona fide residence ended.
allocable to the excluded income, get
However, you are automatically Pub. 514, Foreign Tax Credit for
granted a 2-month extension of time to Individuals.
Lines 2a and 2b
file (to June 15, 1994) if, on the due date
of your return, you live outside the IRA deduction.—If you claim the Physical Presence Test
United States and Puerto Rico, AND exclusion, special rules apply in figuring To meet this test, you must be a U.S.
your tax home (defined later) is outside the amount of your IRA deduction. For citizen or resident alien who is physically
the United States and Puerto Rico. If details, get Pub. 590, Individual present in a foreign country, or
you take this extension, you must attach Retirement Arrangements (IRAs). countries, for at least 330 full days
a statement to your return explaining during any period of 12 months in a row.
that you meet these two conditions. Specific Instructions A full day means the 24-hour period
The automatic 2-month extension also that starts at midnight.
applies to paying the tax. However, Lines 1a and 1b To figure the minimum of 330 full
interest is charged on the unpaid tax days’ presence, add all separate periods
from the regular due date until it is paid. Bona Fide Residence Test you were present in a foreign country
Special extension of time.—The first To meet this test, you must be one of during the 12-month period in which
year you plan to take the foreign earned the following: those days occurred. The 330 full days
income exclusion, you may not expect may be interrupted by periods when you
● A U.S. citizen who is a bona fide are traveling over international waters or
to qualify until after the automatic resident of a foreign country, or
2-month extension period described are otherwise not in a foreign country.
countries, for an uninterrupted period See Pub. 54 for more information and
earlier. If this occurs, you may apply for that includes an entire tax year (January
an extension to a date after you expect examples.
1–December 31), or
to qualify. Note: A nonresident alien who, with a
● A U.S. resident alien who is a citizen U.S. citizen or U.S. resident alien
To apply for this extension, complete or national of a country with which the
and file Form 2350, Application for spouse, chooses to be taxed as a
United States has an income tax treaty resident of the United States may qualify
Extension of Time To File U.S. Income in effect and who is a bona fide resident
Tax Return, with the Internal Revenue under this test if the time requirements
of a foreign country, or countries, for an are met. See Pub. 54 for details on how
Service Center, Philadelphia, PA 19255, uninterrupted period that includes an
before the due date of your return. to make this choice.
entire tax year (January 1–December
Interest is charged on the tax not paid 31). Get Pub. 901, U.S. Tax Treaties, for
by the regular due date as explained a list of countries with which the United Line 3
above. States has an income tax treaty in Tax Home Test
effect.
Choosing the Exclusion No specific rule determines if you are To meet this test, your tax home must
a bona fide resident of a foreign country be in a foreign country, or countries,
To choose the foreign earned income throughout your period of bona fide
exclusion, complete the appropriate because the determination involves your
intention about the length and nature of residence or physical presence,
parts of Form 2555-EZ and file it with whichever applies. For this purpose,
your Form 1040 or Form 1040X, your stay. Evidence of your intention
may be your words and acts. If these your period of physical presence is the
Amended U.S. Individual Income Tax 330 full days during which you were
Return. Your initial choice to claim the conflict, your acts carry more weight
than your words. Generally, if you go to present in a foreign country, not the 12
exclusion must usually be made on a consecutive months during which those
timely filed return (including extensions) a foreign country for a definite,
temporary purpose and return to the days occurred.
or on a return amending a timely filed
return. However, there are exceptions. United States after you accomplish it, Your tax home is your regular or
See Pub. 54 for details. you are not a bona fide resident of the principal place of business, employment,
foreign country. If accomplishing the or post of duty, regardless of where you
Once you choose to claim the maintain your family residence. If you do
exclusion, that choice remains in effect purpose requires an extended, indefinite
stay, and you make your home in the not have a regular or principal place of
for that year and all future years unless business because of the nature of your
it is revoked. To revoke your choice, you foreign country, you may be a bona fide
resident. See Pub. 54 for more trade or business, your tax home is your
must attach a statement to your return regular place of abode (the place where
for the first year you do not wish to information and examples.
If you submitted a statement to the you regularly live).
claim the exclusion. If you revoke your
choice, you may not claim the exclusion authorities of a foreign country in which You are not considered to have a tax
for your next 5 tax years without the you earned income that you are not a home in a foreign country for any period
approval of the Internal Revenue resident of that country, and the during which your abode is in the United
Service. See Pub. 54 for more authorities hold that you are not subject States. However, if you are temporarily
information. to their income tax laws as a resident, present in the United States, or you
you are not considered a bona fide maintain a dwelling in the United States
Earned income credit.—If you claim the (whether or not that dwelling is used by
exclusion, you cannot take the earned resident of that country.
If you submitted such a statement and your spouse and dependents), it does
income credit. not necessarily mean that your abode is
Foreign tax credit or deduction.—You the authorities have not made an
adverse determination of your in the United States during that time.
may not claim a credit or deduction for Example. You are employed on an
foreign income taxes paid on income nonresident status, you are not
offshore oil rig in the territorial waters of
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a foreign country and work a 28-day qualifying period that fall within 1993 is Foreign earned income does not
on/28-day off schedule. You return to 140 (August 14 through December 31, include—
your family residence in the United 1993). ● Amounts from line 12, column (d),
States during your off periods. You are ● Amounts paid to you by the U.S.
considered to have an abode in the Line 17 Government or any of its agencies if you
United States and do not meet the tax were an employee of the U.S.
home test. You may not claim the Enter the total foreign earned income
you earned and received in 1993. Government or any of its agencies,
foreign earned income exclusion.
Report the amount in U.S. dollars using ● Amounts that are actually a
the exchange rates in effect when you distribution of corporate earnings or
Line 12 actually received the income. Be sure to profits rather than a reasonable
Complete columns (a) through (d) if you report on Form 1040 all income you allowance as compensation for your
were present in the United States or any received in 1993 regardless of when you personal services, or
of its possessions in 1993. Do not earned it. ● Amounts received after the end of the
include time spent in the United States Income is earned in the year you tax year following the tax year in which
or its possessions before your period of performed the services for which you you performed the services.
bona fide residence or physical received the pay. But if you received Income earned in prior year.—Foreign
presence, whichever applies, began or your last wage or salary payment for earned income received in 1993 for
after it ended. 1992 in 1993 because of your services you performed in 1992 may be
Column (d).—Enter, in U.S. dollars, the employer’s payroll period, that income excluded from your 1993 gross income
amount of income earned in the United may be treated as earned in 1993. If you if, and to the extent, the income would
States on business (e.g., meetings or cannot treat that wage or salary have been excludable if you had
conventions). Attach a statement payment as earned in 1993, the rules received it in 1992.
showing how you determined the explained later under Income earned in If you are excluding income under this
amount. Do not include this income on prior year apply. See Pub. 54 for more rule, do not include this income on line
line 17. Even if you live and work in a details. 17. Instead, attach a statement to Form
foreign country, any income earned Foreign earned income.—For purposes 2555-EZ showing how you figured the
during the time spent in the United of this form, foreign earned income exclusion. Enter the amount that would
States on business is considered U.S. means only the following types of have been excludable in 1992 on Form
source income and may not be income received for personal services 2555-EZ to the left of line 18. Next to
excluded. you performed in a foreign country the amount write “Exclusion of Income
during the period for which you meet the Earned in 1992.” Include it in the total
Line 14 tax home test and either the bona fide reported on line 18.
residence test or the physical presence Note: If you claimed any deduction,
Enter the number of days in your
test: credit, or exclusion on your 1992 return
qualifying period that fall within 1993.
Your qualifying period is the period ● Wages, salaries, tips, and bonuses. that is definitely related to the 1992
during which you meet the tax home ● Noncash income (such as a home or foreign ear ned income you are excluding
test and either the bona fide residence car) if reported as income on Form under this rule, you may have to amend
test or the physical presence test. 1040, line 7. your 1992 income tax retur n to adjust
Example. You establish a tax home and ● Allowances or reimbursements if the amount claimed. To do this, file
bona fide residence in a foreign country reported as income on Form 1040, For m 1040X.
on August 14, 1993. You maintain the line 7.
tax home and residence until January
31, 1995. The number of days in your

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 List of Countries To Which Travel Restrictions Apply

Time Periods

Country Beginning and Ending

Cuba January 1, 1987 Still in effect

Libya January 1, 1987 Still in effect
Iraq August 2, 1990 Still in effect

List of Qualifying Countries and Time Periods—Waiver of Time Requirements

Time Periods

Country Beginning and Ending

Afghanistan April 23, 1979 Still in effect

Bahrain January 17, 1991 April 9, 1991
Bosnia and Herzegovina April 7, 1992 Still in effect
China June 7, 1989 August 9, 1989
Colombia August 29, 1989 November 22, 1989
Ethiopia April 25, 1991 July 9, 1991
Haiti October 29, 1991 Still in effect
Iran September 1, 1978 Still in effect
Iraq August 3, 1990 April 9, 1991
Jordan December 26, 1990 April 1, 1991
Kuwait August 3, 1990 April 9, 1991
Lebanon August 31, 1979 Still in effect
Liberia June 1, 1990 October 21, 1990
Libya August 31, 1979 August 31, 1992
Mauritania January 13, 1991 April 1, 1991
Morocco January 11, 1991 March 22, 1991
Oman January 17, 1991 April 9, 1991
Pakistan January 15, 1991 April 11, 1991
Panama May 12, 1989 November 6, 1989
Philippines November 15, 1990 December 14, 1990
Qatar January 17, 1991 April 9, 1991
Saudi Arabia January 17, 1991 April 9, 1991
Somalia December 21, 1990 July 5, 1991
Sudan December 26, 1990 April 8, 1991
Tanzania January 25, 1991 March 16, 1991
United Arab Emirates January 17, 1991 April 9, 1991
Yemen August 18, 1990 March 29, 1991

$
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 up to and including August 31, 1992. When
this list is updated, it will be published in the Internal Revenue Bulletin.

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