U.S. Individual Income Tax Return

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Instructions for Form 2555

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2007

Department of the Treasury
Internal Revenue Service

Instructions for Form 2555
Foreign Earned Income
Section references are to the Internal
Revenue Code unless otherwise noted.

General Instructions
Do not include on Form 1040, line
64 (federal income tax withheld),
CAUTION any taxes a foreign employer
withheld from your pay and paid to the
foreign country’s tax authority instead of
to the U.S. Treasury.

!

What’s New for 2007
Exclusion amount. For 2007, the
maximum exclusion has increased to
$85,700.

Purpose of Form
If you are a U.S. citizen or a U.S. resident
alien living in a foreign country, you are
subject to the same U.S. income tax laws
that apply to citizens and resident aliens
living in the United States. But if you
qualify, use Form 2555 to exclude a
limited amount of your foreign earned
income. Also, use it to claim the housing
exclusion or deduction. You cannot
exclude or deduct more than your foreign
earned income for the tax year.
You may be able to use Form
2555-EZ, Foreign Earned Income
Exclusion, if you did not have any
self-employment income for the year,
your total foreign earned income did not
exceed $85,700, you do not have any
business or moving expenses, and you
do not claim the housing exclusion or
deduction. For more details, see Form
2555-EZ and its separate instructions.
Note. Specific rules apply to determine if
you are a resident or nonresident alien of
the United States. See Pub. 519, U.S.
Tax Guide for Aliens, for details.

Who Qualifies
You qualify for the tax benefits available
to taxpayers who have foreign earned
income if both of the following apply.
• You meet the tax home test (discussed
later on this page).
• You meet either the bona fide
residence test (see page 2) or the
physical presence test (see page 2).
Note. If your only earned income from
work abroad is pay you received from the
U.S. Government as its employee, you do
not qualify for either of the exclusions or
the housing deduction. Do not file Form
2555.
Tax home test. To meet this test, your
tax home must be in a foreign country, or
countries (see Foreign country, later),
throughout your period of bona fide
residence or physical presence,
whichever applies. For this purpose, your
period of physical presence is the 330 full
days during which you were present in a
foreign country, not the 12 consecutive

months during which those days
occurred.
Your tax home is your regular or
principal place of business, employment,
or post of duty, regardless of where you
maintain your family residence. If you do
not have a regular or principal place of
business because of the nature of your
trade or business, your tax home is your
regular place of abode (the place where
you regularly live).
You are not considered to have a tax
home in a foreign country for any period
during which your abode is in the United
States. However, if you are temporarily
present in the United States, or you
maintain a dwelling in the United States
(whether or not that dwelling is used by
your spouse and dependents), it does not
necessarily mean that your abode is in
the United States during that time.
Example. You are employed on an
offshore oil rig in the territorial waters of a
foreign country and work a 28-day on/
28-day off schedule. You return to your
family residence in the United States
during your off periods. You are
considered to have an abode in the
United States and do not meet the tax
home test. You cannot claim either of the
exclusions or the housing deduction.
Foreign country. A foreign country is
any territory (including the airspace,
territorial waters, seabed, and subsoil)
under the sovereignty of a government
other than the United States.
The term “foreign country” does not
include U.S. possessions or territories. It
does not include the Antarctic region.

Travel to Cuba
Generally, if you were in Cuba in violation
of U.S. travel restrictions, the following
rules apply:
• Any time spent in Cuba cannot be
counted in determining if you qualify
under the bona fide residence or physical
presence test,
• Any income earned in Cuba is not
considered foreign earned income, and
• Any housing expenses in Cuba (or
housing expenses for your spouse or
dependents in another country while you
were in Cuba) are not considered
qualified housing expenses.
Note. If you performed services at the
U.S. Naval Base at Guantanamo Bay,
you were not in violation of U.S. travel
restrictions.

Additional Information
Pub. 54, Tax Guide for U.S. Citizens and
Resident Aliens Abroad, has more
information about the bona fide residence
test, the physical presence test, the
foreign earned income exclusion, and the
housing exclusion and deduction. You
can get this publication from most U.S.
embassies and consulates or by writing
to: National Distribution Center, P.O. Box
Cat. No. 11901A

8903, Bloomington, IL 61702-8903. You
can also download this publication (as
well as other forms and publications) from
the IRS website at www.irs.gov.

Waiver of Time Requirements
If your tax home was in a foreign country
and you were a bona fide resident of, or
physically present in, a foreign country
and had to leave because of war, civil
unrest, or similar adverse conditions, the
minimum time requirements specified
under the bona fide residence and
physical presence tests may be waived.
You must be able to show that you
reasonably could have expected to meet
the minimum time requirements if you had
not been required to leave. Each year the
IRS will publish in the Internal Revenue
Bulletin a list of countries and the dates
they qualify for the waiver. If you left one
of the countries during the period
indicated, you can claim the tax benefits
on Form 2555, but only for the number of
days you were a bona fide resident of, or
physically present in, the foreign country.
If you can claim either of the
exclusions or the housing deduction
because of the waiver of time
requirements, attach a statement to your
return explaining that you expected to
meet the applicable time requirement, but
the conditions in the foreign country
prevented you from the normal conduct of
business. Also, enter “Claiming Waiver” in
the top margin on page 1 of your 2007
Form 2555.

When To File
A 2007 calendar year Form 1040 is
generally due April 15, 2008.
However, you are automatically
granted a 2-month extension of time to
file (to June 16, 2008, for a 2007 calendar
year return) if, on the due date of your
return, you live outside the United States
and Puerto Rico and your tax home
(defined earlier) is outside the United
States and Puerto Rico. If you take this
extension, you must attach a statement to
your return explaining that you meet
these two conditions.
The automatic 2-month extension also
applies to paying the tax. However,
interest is charged on the unpaid tax from
the regular due date (April 15, 2008, for a
2007 calendar year return) until it is paid.
Special extension of time. The first
year you plan to take the foreign earned
income exclusion and/or the housing
exclusion or deduction, you may not
expect to qualify until after the automatic
2-month extension period described
earlier. If this occurs, you can apply for an
extension to a date after you expect to
qualify.
To apply for this extension, complete
and file Form 2350, Application for
Extension of Time To File U.S. Income
Tax Return, with the Department of the

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Instructions for Form 2555

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Treasury, Internal Revenue Service
Center, Austin, TX 73301-0215, before
the due date of your return. Interest is
charged on the tax not paid by the regular
due date as explained earlier.

Choosing the Exclusion(s)
To choose either of the exclusions,
complete the appropriate parts of Form
2555 and file it with your Form 1040 or
Form 1040X, Amended U.S. Individual
Income Tax Return. Your initial choice to
claim the exclusion must usually be made
on a timely filed return (including
extensions) or on a return amending a
timely filed return. However, there are
exceptions. See Pub. 54 for details.
Once you choose to claim an
exclusion, that choice remains in effect for
that year and all future years unless it is
revoked. To revoke your choice, you must
attach a statement to your return for the
first year you do not wish to claim the
exclusion(s). If you revoke your choice,
you cannot claim the exclusion(s) for your
next 5 tax years without the approval of
the Internal Revenue Service. See Pub.
54 for more information.
Figuring tax on income not excluded.
If you claim the foreign earned income
exclusion, the housing exclusion, or both,
you must figure the tax on your
nonexcluded income using the tax rates
that would have applied had you not
claimed the exclusions. See the
Instructions for Form 1040 and complete
the Foreign Earned Income Tax
Worksheet to figure the amount of tax to
enter on Form 1040, line 44. When
figuring your alternative minimum tax on
Form 6251, you must use the Foreign
Earned Income Tax Worksheet in the
instructions for Form 6251.
Earned income credit. You cannot take
the earned income credit if you claim
either of the exclusions or the housing
deduction.

Specific Instructions
Part II
Bona Fide Residence Test
To meet this test, you must be one of the
following:
• A U.S. citizen who is a bona fide
resident of a foreign country, or countries,
for an uninterrupted period that includes
an entire tax year (January 1 – December
31, if you file a calendar year return), or
• A U.S. resident alien who is a citizen or
national of a country with which the
United States has an income tax treaty in
effect and who is a bona fide resident of a
foreign country, or countries, for an
uninterrupted period that includes an
entire tax year (January 1 – December 31,
if you file a calendar year return). See
Pub. 901, U.S. Tax Treaties, for a list of
countries with which the United States
has an income tax treaty in effect.
No specific rule determines if you are a
bona fide resident of a foreign country
because the determination involves your
intention about the length and nature of
your stay. Evidence of your intention may
be your words and acts. If these conflict,
your acts carry more weight than your
words. Generally, if you go to a foreign
country for a definite, temporary purpose
and return to the United States after you

accomplish it, you are not a bona fide
resident of the foreign country. If
accomplishing the purpose requires an
extended, indefinite stay, and you make
your home in the foreign country, you
may be a bona fide resident. See Pub. 54
for more information and examples.
Lines 13a and 13b. If you submitted a
statement of nonresidence to the
authorities of a foreign country in which
you earned income and the authorities
hold that you are not subject to their
income tax laws by reason of
nonresidency in the foreign country, you
are not considered a bona fide resident of
that country.
If you submitted such a statement and
the authorities have not made an adverse
determination of your nonresident status,
you are not considered a bona fide
resident of that country.

Part III
Physical Presence Test
To meet this test, you must be a U.S.
citizen or resident alien who is physically
present in a foreign country, or countries,
for at least 330 full days during any period
of 12 months in a row. A full day means
the 24-hour period that starts at midnight.
To figure the minimum of 330 full days,
add all separate periods you were present
in a foreign country during the 12-month
period shown on line 16. The 330 full
days can be interrupted by periods when
you are traveling over international waters
or are otherwise not in a foreign country.
See Pub. 54 for more information and
examples.
Note. A nonresident alien who, with a
U.S. citizen or U.S. resident alien spouse,
chooses to be taxed as a resident of the
United States can qualify under this test if
the time requirements are met. See Pub.
54 for details on how to make this choice.

Part IV
Foreign Earned Income
Enter in this part the total foreign earned
income you earned and received
(including income constructively received)
during the tax year. If you are a cash
basis taxpayer, report on Form 1040 all
income you received during the tax year
regardless of when you earned it.
Income is earned in the tax year you
perform the services for which you
receive the pay. But if you are a cash
basis taxpayer and, because of your
employer’s payroll periods, you received
your last salary payment for 2006 in 2007,
that income may be treated as earned in
2007. If you cannot treat that salary
payment as income earned in 2007, the
rules explained under Income earned in
prior year, discussed later, apply. See
Pub. 54 for more details.
Foreign earned income for this
purpose means wages, salaries,
professional fees, and other
compensation received for personal
services you performed in a foreign
country during the period for which you
meet the tax home test and either the
bona fide residence test or the physical
presence test. It also includes noncash
income (such as a home or car) and
allowances or reimbursements.
Foreign earned income does not
include amounts that are actually a
distribution of corporate earnings or

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profits rather than a reasonable allowance
as compensation for your personal
services. It also does not include the
following types of income.
• Pension and annuity income (including
social security and railroad retirement
benefits treated as social security).
• Interest, ordinary dividends, capital
gains, alimony, etc.
• Portion of 2006 moving expense
deduction allocable to 2007 that is
included in your 2007 gross income. For
details, see Moving Expense Attributable
to Foreign Earnings in 2 Years under
Moving Expenses in Pub. 54.
• Amounts paid to you by the U.S.
Government or any of its agencies if you
were an employee of the U.S.
Government or any of its agencies.
• Amounts received after the end of the
tax year following the tax year in which
you performed the services.
• Amounts you must include in gross
income because of your employer’s
contributions to a nonexempt employees’
trust or to a nonqualified annuity contract.
Income received in prior year. Foreign
earned income received in 2006 for
services you performed in 2007 can be
excluded from your 2006 gross income if,
and to the extent, the income would have
been excludable if you had received it in
2007. To claim the additional exclusion,
you must amend your 2006 tax return. To
do this, file Form 1040X.
Income earned in prior year. Foreign
earned income received in 2007 for
services you performed in 2006 can be
excluded from your 2007 gross income if,
and to the extent, the income would have
been excludable if you had received it in
2006.
If you are excluding income under this
rule, do not include this income in Part IV.
Instead, attach a statement to Form 2555
showing how you figured the exclusion.
Enter the amount that would have been
excludable in 2006 on Form 2555 to the
left of line 45. Next to the amount enter
“Exclusion of Income Earned in 2006.”
Include it in the total reported on line 45.
Note. If you claimed any deduction,
credit, or exclusion on your 2006 return
that is definitely related to the 2006
foreign earned income you are excluding
under this rule, you may have to amend
your 2006 income tax return to adjust the
amount you claimed. To do this, file Form
1040X.
Line 20. If you engaged in an
unincorporated trade or business in which
both personal services and capital were
material income-producing factors, a
reasonable amount of compensation for
your personal services will be considered
earned income. The amount treated as
earned income, however, cannot be more
than 30% of your share of the net profits
from the trade or business after
subtracting the deduction for one-half of
self-employment tax.
If capital is not an income-producing
factor and personal services produced the
business income, the 30% rule does not
apply. Your entire gross income is earned
income.
Line 25. Enter the value of meals and/or
lodging provided by, or on behalf of, your
employer that is excludable from your
income under section 119. To be
excludable, the meals and lodging must
have been provided for your employer’s
convenience and on your employer’s

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Instructions for Form 2555

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business premises. In addition, you must
have been required to accept the lodging
as a condition of your employment. If you
lived in a camp provided by, or on behalf
of, your employer, the camp may be
considered part of your employer’s
business premises. See Exclusion of
Meals and Lodging in Pub. 54 for details.

Part VI
Line 28. Enter the total reasonable
expenses paid or incurred during the tax
year by you, or on your behalf, for your
foreign housing and the housing of your
spouse and dependents if they lived with
you. You can also include the reasonable
expenses of a second foreign household
(defined later). Housing expenses are
considered reasonable to the extent they
are not lavish or extravagant under the
circumstances.
Housing expenses include rent, utilities
(other than telephone charges), real and
personal property insurance,
nonrefundable fees paid to obtain a lease,
rental of furniture and accessories,
residential parking, and household
repairs. You can also include the fair
rental value of housing provided by, or on
behalf of, your employer if you have not
excluded it on line 25.
Do not include deductible interest and
taxes, any amount deductible by a
tenant-stockholder in connection with
cooperative housing, the cost of buying or
improving a house, principal payments on
a mortgage, or depreciation on the house.
Also, do not include the cost of domestic
labor, pay television, or the cost of buying
furniture or accessories.
Include expenses for housing only
during periods for which:
• The value of your housing is not
excluded from gross income under
section 119 (unless you maintained a

second foreign household as defined
later), and
• You meet the tax home test and either
the bona fide residence or physical
presence test.
Second foreign household. If you
maintained a separate foreign household
for your spouse and dependents at a
place other than your tax home because
the living conditions at your tax home
were dangerous, unhealthful, or otherwise
adverse, you can include the expenses of
the second household on line 28.
Married couples. The following rules
apply if both you and your spouse qualify
for the tax benefits of Form 2555.
Same foreign household. If you and
your spouse lived in the same foreign
household and file a joint return, you must
figure your housing amounts (line 33)
jointly. If you file separate returns, only
one spouse can claim the housing
exclusion or deduction.
In figuring your housing amount
jointly, either spouse (but not both) can
claim the housing exclusion or housing
deduction. However, if you and your
spouse have different periods of
residence or presence, and the one with
the shorter period of residence or
presence claims the exclusion or
deduction, you can claim as housing
expenses only the expenses for that
shorter period. The spouse claiming the
exclusion or deduction can aggregate the
housing expenses of both spouses,
subject to the limit on housing expenses
(line 29b), and subtract his or her base
housing amount.
Separate foreign households. If you
and your spouse lived in separate foreign
households, you each can claim qualified
expenses for your own household only if:
• Your tax homes were not within a
reasonable commuting distance of each
other, and

Limit on Housing Expenses Worksheet —
Line 29b

Keep for Your Records

Note. If the location in which you incurred housing expenses is not listed in the table
beginning on page 5, and the number of days in your qualifying period that fall within the
2007 tax year is 365, DO NOT complete this worksheet. Instead, enter $25,710 on line 29b.
1. Enter the number of days in your qualifying period that fall within the
2007 tax year (see the instructions for line 31) . . . . . . . . . . . . . . .

1.

2. Did you enter 365 on line 1?
No. If the amount on line 1 is less than 365, skip line 2 and go to
line 3.

!

Yes. Locate the amount under the column Limit on Housing
Expenses (full year) from the table beginning on page 5 for the
location in which you incurred housing expenses. This is your
limit on housing expenses. Enter the amount here and on
line 29b.
STOP

Do not complete the rest of this worksheet . . . . . . . . . . . .

2.

3. Enter the amount under the column Limit on Housing Expenses
(daily) from the table beginning on page 5 for the location in which
you incurred housing expenses. If the location is not listed in the
table, enter $70.44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.

4. Multiply line 1 by line 3. This is your limit on housing expenses.
Enter the result here and on line 29b . . . . . . . . . . . . . . . . . . . . .

4.

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• Each spouse’s household was not
within a reasonable commuting distance
of the other spouse’s tax home.
Otherwise, only one spouse can claim
his or her housing exclusion or deduction.
This is true even if you and your spouse
file separate returns.
See Pub. 54 for additional information.
Line 29a. Enter the city or other location
(if applicable) and the country where you
incurred foreign housing expenses during
the tax year only if your location is listed
in the table beginning on page 5;
otherwise, leave this line blank.
Line 29b. Your housing expenses may
not exceed a certain limit. The limit on
housing expenses varies depending upon
the location in which you incur housing
expenses. In 2007, for most locations,
this limit is $25,710 (30 percent of
$85,700) if your qualifying period includes
all of 2007 (or $70.44 per day if the
number of days in your qualifying period
that fall within your 2007 tax year is less
than 365).
The table beginning on page 5 lists the
housing expense limits based on
geographic differences in foreign housing
costs relative to housing costs in the
United States. If the location in which you
incurred housing expenses is listed in the
table, or the number of days in your
qualifying period that fall within the 2007
tax year is less than 365, use the Limit on
Housing Expenses Worksheet on this
page to figure the amount to enter on line
29b. If the location in which you incurred
housing expenses is not listed in the
table, and the number of days in your
qualifying period is 365, enter $25,710 on
line 29b.
Example. For 2007, because your
location is not listed in the table beginning
on page 5, your limit on housing
expenses is $70.44 per day ($25,710
divided by 365). If you file a calendar year
return and your qualifying period is
January 1, 2007, to September 30, 2007
(273 days), you would enter $19,230 on
line 29b ($70.44 mutiplied by 273 days).
More than one foreign location. If
you moved during the 2007 tax year and
incurred housing expenses in more than
one foreign location as a result, complete
the Limit on Housing Expenses
Worksheet on this page for each location
in which you incurred housing expenses,
entering the number of qualifying days
during which you lived in the applicable
location on line 1. Add the results shown
on line 4 of each worksheet, and enter the
total on line 29b.
If you moved during the 2007 tax
year and are completing more
CAUTION than one Limit on Housing
Expenses Worksheet, the total number of
days entered on line 1 of your worksheets
may not exceed the total number of days
in your qualifying period that fall within the
2007 tax year (that is, the number of days
entered on Form 2555, line 31).
Line 31. Enter the number of days in
your qualifying period that fall within your
2007 tax year. Your qualifying period is
the period during which you meet the tax
home test and either the bona fide
residence or the physical presence test.
Example. You establish a tax home
and bona fide residence in a foreign
country on August 14, 2007. You maintain
the tax home and residence until January
31, 2009. You are a calendar year

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Instructions for Form 2555

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taxpayer. The number of days in your
qualifying period that fall within your 2007
tax year is 140 (August 14 through
December 31, 2007).
Nontaxable U.S. Government
allowances. If you or your spouse
received a nontaxable housing allowance
as a military or civilian employee of the
U.S. Government, see Pub. 54 for
information on how that allowance may
affect your housing exclusion or
deduction.
Line 34. Enter any amount your
employer paid or incurred on your behalf
that is foreign earned income included in
your gross income for the tax year
(without regard to section 911).
Examples of employer-provided
amounts are:
• Wages and salaries received from your
employer.
• The fair market value of compensation
provided in kind (such as the fair rental
value of lodging provided by your
employer as long as it is not excluded on
line 25).
• Rent paid by your employer directly to
your landlord.
• Amounts paid by your employer to
reimburse you for housing expenses,
educational expenses of your
dependents, or as part of a tax
equalization plan.
Self-employed individuals. If all of your
foreign earned income (Part IV) is
self-employment income, skip lines 34
and 35 and enter -0- on line 36. If you
qualify, be sure to complete Part IX.

Part VII
Married couples. If both you and your
spouse qualify for, and choose to claim,
the foreign earned income exclusion,
figure the amount of the exclusion
separately for each of you. You each

Housing Deduction Carryover
Worksheet — Line 49

must complete Part VII of your separate
Forms 2555.
Community income. The amount of the
exclusion is not affected by the
income-splitting provisions of community
property laws. The sum of the amounts
figured separately for each of you is the
total amount excluded on a joint return.

Part VIII
If you claim either of the exclusions, you
cannot claim any deduction (including
moving expenses), credit, or exclusion
that is definitely related to the excluded
income. If only part of your foreign earned
income is excluded, you must prorate
such items based on the ratio that your
excludable earned income bears to your
total foreign earned income. See Pub. 54
for details on how to figure the amount
allocable to the excluded income.
The exclusion under section 119 and
the housing deduction are not considered
definitely related to the excluded income.
Line 44. Report in full on Form 1040 and
related forms and schedules all
deductions allowed in figuring your
adjusted gross income (Form 1040, line
37). Enter on line 44 the total amount of
those deductions (such as the deduction
for moving expenses, the deduction for
one-half of self-employment tax, and the
expenses claimed on Schedule C or C-EZ
(Form 1040)) that are not allowed
because they are allocable to the
excluded income. This applies only to
deductions definitely related to the
excluded earned income. See Pub. 54 for
details on how to report your itemized
deductions (such as unreimbursed
employee business expenses) that are
allocable to the excluded income.
IRA deduction. The IRA deduction is
not definitely related to the excluded

Keep for Your Records

1. Enter the amount from your 2006 Form 2555, line 46 . . . . . . . . . .

1.

2. Enter the amount from your 2006 Form 2555, line 48 . . . . . . . . . .

2.

3. Subtract line 2 from line 1. If the result is zero, stop; enter -0- on
line 49 of your 2007 Form 2555. You do not have any housing
deduction carryover from 2006 . . . . . . . . . . . . . . . . . . . . . . . . . .

3.

4. Enter the amount from your 2007 Form 2555, line 47 . . . . . . . . . .

4.

5. Enter the amount from your 2007 Form 2555, line 48 . . . . . . . . . .

5.

6. Subtract line 5 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.

7. Enter the smaller of line 3 or line 6 here and on line 49 of your 2007
Form 2555. If line 3 is more than line 6, you cannot carry the
difference over to any future tax year . . . . . . . . . . . . . . . . . . . . . 䊳 7.

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income. However, special rules apply in
figuring the amount of your IRA
deduction. For details, see Pub. 590,
Individual Retirement Arrangements
(IRAs).
Foreign taxes. You cannot take a credit
or deduction for foreign income taxes paid
or accrued on income that is excluded
under either of the exclusions.
If all of your foreign earned income is
excluded, you cannot claim a credit or
deduction for the foreign taxes paid or
accrued on that income.
If only part of your income is excluded,
you cannot claim a credit or deduction for
the foreign taxes allocable to the
excluded income. See Pub. 514, Foreign
Tax Credit for Individuals, for details on
how to figure the amount allocable to the
excluded income.

Part IX
If line 33 is more than line 36 and line 27
is more than line 43, complete this part to
figure your housing deduction. Also,
complete this part to figure your housing
deduction carryover from 2006.
One-year carryover. If the amount on
line 46 is more than the amount on line
47, you can carry the difference over to
your 2008 tax year. If you cannot deduct
the excess in 2008 because of the 2008
limit, you cannot carry it over to any future
tax year.
Paperwork Reduction Act Notice. We
ask for the information on this form to
carry out the Internal Revenue laws of the
United States. You are required to give us
the information. We need it to ensure that
you are complying with these laws and to
allow us to figure and collect the right
amount of tax.
You are not required to provide the
information requested on a form that is
subject to the Paperwork Reduction Act
unless the form displays a valid OMB
control number. Books or records relating
to a form or its instructions must be
retained as long as their contents may
become material in the administration of
any Internal Revenue law. Generally, tax
returns and return information are
confidential, as required by Internal
Revenue Code section 6103.
The average time and expenses
required to complete and file this form will
vary depending on individual
circumstances. For the estimated
averages, see the instructions for your
income tax return.
If you have suggestions for making this
form simpler, we would be happy to hear
from you. See the instructions for your
income tax return.

Page 5 of 11

Instructions for Form 2555

13:06 - 12-SEP-2007

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2007 Limits on Housing Expenses
Country

City or Other Location

Argentina

Buenos Aires

Australia

Canberra
Melbourne
Perth

Austria

Vienna

Bahamas, The

Nassau

Limit on Housing
Expenses (daily)

Limit on Housing
Expenses (full year)

120.27

43,900

70.68

25,800

72.60

26,500

109.59

40,000

78.97

28,824

136.16

49,700

Bahrain

120.55

44,000

Barbados

103.29

37,700

Belgium

Antwerp

98.90

36,100

Brussels

137.53

50,200

Gosselies

98.90

36,100

Hoogbuul

98.90

36,100

Mons

98.90

36,100

SHAPE/Chievres

98.90

36,100

197.26

72,000

Bermuda
Bosnia-Herzegovina

Sarajevo

Brazil

Brasilia
Rio de Janeiro

Canada

74.52

27,200

101.64

37,100

96.16

35,100

Sao Paulo

127.40

46,500

Calgary

109.04

39,800

92.88

33,900

Dartmouth
Edmonton

83.01

30,300

Halifax

92.88

33,900

London, Ontario

79.18

28,900

Montreal

153.97

56,200

Ottawa

118.90

43,400

Toronto

126.03

46,000

Vancouver

122.19

44,600

Victoria

92.33

33,700

Winnipeg

80.00

29,200

Chile

Santiago

96.71

35,300

China

Beijing

134.62

49,137

Hong Kong

313.15

114,300

Colombia

Shanghai

156.17

57,001

Bogota

148.22

54,100

All cities other than Bogota and
Barranquilla

123.01

44,900

Costa Rica

San Jose

Dominican Republic

Santo Domingo

Ecuador

Guayaquil
Quito

France

71.78

26,200

110.96

40,500

84.38

30,800

83.56

30,500

Garches

238.90

87,200

Le Havre

105.48

38,500

Lyon

149.32

54,500

Marseille

139.73

51,000

Montpellier

123.84

45,200

Paris

238.90

87,200

Sevres

238.90

87,200

Suresnes

238.90

87,200

Versailles

238.90

87,200

-5-

Page 6 of 11

Instructions for Form 2555

13:06 - 12-SEP-2007

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2007 Limits on Housing Expenses
Country
Germany

Limit on Housing
Expenses (daily)

City or Other Location
Babenhausen
Bad Aibling
Bad Nauheim

Limit on Housing
Expenses (full year)

116.99

42,700

99.73

36,400

93.42

34,100

Baumholder

106.58

38,900

Berlin

143.29

52,300

Birkenfeld

106.58

38,900

Boeblingen

127.40

46,500

Butzbach

91.51

33,400

Darmstadt

116.99

42,700

Erlangen
Frankfurt am Main

74.25

27,100

122.19

44,600

Friedberg

93.42

34,100

Fuerth

74.25

27,100

101.10

36,900

80.27

29,300

Garmisch-Partenkirchen
Geilenkirchen
Gelnhausen

126.58

46,200

88.77

32,400

101.37

37,000

Giessen

91.51

33,400

Grafenwoehr

75.89

27,700

126.58

46,200

Hannover

87.40

31,900

Heidelberg

116.71

42,600

Idar-Oberstein

106.58

38,900

Ingolstadt

125.75

45,900

Kaiserslautern, Landkreis

130.41

47,600

Kitzingen

101.37

37,000

Leimen

116.71

42,600

Ludwigsburg

127.40

46,500

Mainz

143.84

52,500

Germersheim
Giebelstadt

Hanau

Mannheim

116.71

42,600

Munich

125.75

45,900

Nellingen

127.40

46,500

Neubruecke

106.58

38,900

Nuernberg

74.25

27,100

Ober Ramstadt

116.99

42,700

Oberammergau

101.10

36,900

Pirmasens

130.41

47,600

Rheinau

116.71

42,600

74.25

27,100

Schwabach
Schwetzingen

116.71

42,600

Seckenheim

116.71

42,600

Sembach

130.41

47,600

Stuttgart

127.40

46,500

Wertheim

101.40

37,000

Wiesbaden

143.84

52,500

Wuerzburg

101.40

37,000

74.25

27,100

130.41

47,600

Zirndorf
Zweibrueken

-6-

Page 7 of 11

Instructions for Form 2555

13:06 - 12-SEP-2007

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2007 Limits on Housing Expenses
City or Other Location

Limit on Housing
Expenses (daily)

Germany (Continued)

All cities other than Augsburg,
Babenhausen, Bad Aibling, Bad
Kreuznach, Bad Nauheim,
Baumholder, Berchtesgaden,
Berlin, Birkenfeld, Boeblingen,
Bonn, Bremen, Bremerhaven,
Butzbach, Cologne, Darmstadt,
Delmenhorst, Duesseldorf,
Erlangen, Flensburg, Frankfurt
am Main, Friedberg, Fuerth,
Garlstedt,
Garmisch-Partenkirchen,
Geilenkirchen, Gelnhausen,
Germersheim, Giebelstadt,
Giessen, Grafenwoehr, Grefrath,
Greven, Gruenstadt, Hamburg,
Hanau, Handorf, Hannover,
Heidelberg, Heilbronn,
Herongen, Idar-Oberstein,
Ingolstadt, Kaiserslautern,
Landkreis, Kalkar, Karlsruhe,
Kerpen, Kitzingen, Koblenz,
Leimen, Leipzig, Ludwigsburg,
Mainz, Mannheim,
Moenchen-Gladbach, Muenster,
Munich, Nellingen, Neubruecke,
Noervenich, Nuernberg, Ober
Ramstadt, Oberammergau,
Osterholz-Scharmbeck,
Pirmasens, Rheinau, Rheinberg,
Schwabach, Schwetzingen,
Sembach, Stuttgart, Twisteden,
Wahn, Wertheim, Wiesbaden,
Worms, Wuerzburg, Zirndorf,
and Zweibrueken

103.29

37,700

Greece

Athens

94.25

34,400

Country

Guatemala

Limit on Housing
Expenses (full year)

Argyroupolis

91.23

33,300

Elefsis

94.25

34,400

Ellinikon

94.25

34,400

Mt. Hortiatis

91.23

33,300

Mt. Parnis

94.25

34,400

Mt. Pateras

94.25

34,400

Nea Makri

94.25

34,400

Perivolaki

91.23

33,300

Piraeus

94.25

34,400

Souda Bay (Crete)

72.88

26,600

Tanagra

94.25

34,400

Thessaloniki

91.23

33,300

Guatemala City

Holy See, The
Hungary

Budapest

India

Mumbai
New Delhi

103.01

37,600

159.18

58,100

89.04

32,500

156.19

57,011

73.75

26,920

Indonesia

Jakarta

103.50

37,776

Ireland

Dublin

80.55

29,400

Limerick

80.00

29,200

Shannon Area

80.00

29,200

Catania

78.63

28,700

Genoa

103.29

37,700

85.48

31,200

103.29

37,700

Italy

Gioia Tauro
La Spezia
Leghorn
Milan

-7-

99.45

36,300

237.53

86,700

Page 8 of 11

Instructions for Form 2555

13:06 - 12-SEP-2007

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2007 Limits on Housing Expenses
Country
Italy (Continued)

City or Other Location
Naples
Pisa

47,900

99.45

36,300

109.59

40,000

159.18

58,100

81.37

29,700

78.63

28,700

118.63

43,300

Verona

75.89

27,700

Vicenza

110.68

40,400

Turin

All cities other than Avellino,
Brindisi, Catania, Florence,
Gaeta, Genoa, Gioia Tauro, La
Spezia, Leghorn, Milan, Mount
Vergine, Naples, Nettuno, Pisa,
Pordenone-Aviano, Rome,
Sardinia, Sigonella, Turin,
Verona, and Vicenza
Kingston

91.23

33,300

112.88

41,200

Akashi

73.70

26,900

Atsugi

93.15

34,000

Camp Zama

93.15

34,000

Chiba-Ken

93.15

34,000

Fussa

93.15

34,000

Gifu

80.00

29,200

Gotemba

75.07

27,400

Haneda

93.15

34,000

Kanagawa-Ken

93.15

34,000

Komaki

80.00

29,200

Machida-Shi

93.15

34,000

Nagoya

103.52

37,786

Okinawa Prefecture

123.56

45,100

Osaka-Kobe

145.30

53,036

Sagamihara

93.15

34,000

Saitama-Ken

93.15

34,000

Sasebo

73.70

26,900

Tachikawa

93.15

34,000

234.79

85,700

Tokyo
Tokyo-to

Korea

131.23

Rome
Sigonella

Japan

Limit on Housing
Expenses (full year)

Pordenone-Aviano
Sardinia

Jamaica

Limit on Housing
Expenses (daily)

99.73

36,400

Yokohama

131.23

47,900

Yokosuka

113.42

41,400

Yokota

93.15

34,000

Camp Carroll

77.53

28,300

179.18

65,400

Chinhae

83.01

30,300

Chunchon

76.99

28,100

Colbern

179.18

65,400

K-16

179.18

65,400

86.03

31,400

179.18

65,400

Camps Market

Kimhae
Kimpo Airfield
Kwangju

82.19

30,000

Mercer

179.18

65,400

Munsan

75.62

27,600

Osan AB

93.42

34,100

-8-

Page 9 of 11

Instructions for Form 2555

13:06 - 12-SEP-2007

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2007 Limits on Housing Expenses
Country
Korea (Continued)

Limit on Housing
Expenses (daily)

City or Other Location
Pusan

86.03

31,400

Pyongtaek

93.42

34,100

Seoul

179.18

65,400

Suwon

179.18

65,400

Taegu

97.53

35,600

Tongduchon

75.62

27,600

Uijongbu

106.85

39,000

Waegwan

77.53

28,300

All cities other than Ammo Depot
#9, Camp Carroll, Camps
Market, Changwon, Chinhae,
Chunchon, Colbern, K-16,
Kimhae, Kimpo Airfield, Kunsan,
Kwangju, Mercer, Munsan, Osan
AB, Pusan, Pyongtaek, Seoul,
Suwon, Taegu, Tongduchon,
Uijongbu, and Waegwan
Kuwait

87.40

31,900

Kuwait City

166.85

60,900

All cities other than Kuwait City

149.59

54,600

130.68

47,700

96.99

35,400

131.51

48,000

Luxembourg
Macedonia

Skopje

Malaysia

Kuala Lumpur
All cities other than Kuala Lumpur

Malta
Mexico

Netherlands

Limit on Housing
Expenses (full year)

92.33

33,700

108.22

39,500

Hermosillo

91.23

33,300

Mazatlan

81.92

29,900

Mexico City

116.16

42,400

Monterrey

108.49

39,600

All cities other than Ciudad Juarez,
Cuernavaca, Guadalajara,
Hermosillo, Matamoros,
Mazatlan, Merida, Metapa,
Mexico City, Monterrey, Nogales,
Nuevo Laredo, Tapachula,
Tijuana, Tuxtla Gutierrez, and
Veracruz

103.84

37,900

Amsterdam

144.93

52,900

Aruba

98.63

36,000

Brunssum

90.14

32,900

Eygelshoven

90.14

32,900

Hague, The

163.29

59,600

Heerlen

90.14

32,900

Hoensbroek

90.14

32,900

Hulsberg

90.14

32,900

Kerkrade

90.14

32,900

Landgraaf

90.14

32,900

Maastricht

90.14

32,900

Papendrecht

114.52

41,800

Rotterdam

114.52

41,800

Schaesburg

90.14

32,900

Schinnen

90.14

32,900

Schiphol

144.93

52,900

Ypenburg

163.29

59,600

-9-

Page 10 of 11

Instructions for Form 2555

13:06 - 12-SEP-2007

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2007 Limits on Housing Expenses
Country

Limit on Housing
Expenses (daily)

City or Other Location

Limit on Housing
Expenses (full year)

Netherlands (Continued)

All cities other than Amsterdam,
Aruba, Brunssum, Coevorden,
Eygelshoven, The Hague,
Heerlen, Hoensbroek, Hulsberg,
Kerkrade, Landgraaf, Maastricht,
Margraten, Papendrecht,
Rotterdam, Schaesburg,
Schinnen, Schiphol, and
Ypenburg

83.29

30,400

New Zealand

Auckland

97.81

35,700
33,800

Wellington

92.60

Nicaragua

Managua

87.12

31,800

Norway

Oslo

83.76

30,573

Stavanger

96.44

35,200

All cities other than Oslo and
Stavanger

98.08

35,800

Panama

Panama City

88.22

32,200

Peru

Lima

74.79

27,300

Philippines

Cavite

98.63

36,000

Manila

98.63

36,000

72.33

26,400

Alverca

145.48

53,100

71.78

26,200
53,100

Poland
Portugal

Lajes Field
Lisbon

145.48

Qatar

Doha

95.30

34,786

Russia

Moscow

249.04

90,900

Saint Petersburg

113.70

41,500

Sakhalin Island

212.33

77,500

Vladivostok

212.33

77,500

Yekaterinburg

129.86

47,400
31,500

Rwanda

Kigali

86.30

Saudi Arabia

Jeddah

84.02

30,667

Riyadh

84.02

30,667

Singapore

155.34

56,700

South Africa

Pretoria

110.14

40,200

Spain

Barcelona

108.49

39,600

Madrid

107.67

39,300

92.60

33,800

111.51

40,700

Rota
Valencia
Switzerland

Bern

139.45

50,900

Geneva

194.25

70,900

Zurich

107.45

39,219

All cities other than Bern, Geneva,
and Zurich

90.14

32,900

Taiwan

Taipei

122.42

44,685

Thailand

Bangkok

100.27

36,600

Turkey

Ukraine
United Arab Emirates

Ankara

89.04

32,500

Elmadag

89.04

32,500

Izmir-Cigli

86.58

31,600

Manzarali

89.04

32,500

Yamanlar

86.58

31,600

Kiev

89.98

32,844

Abu Dhabi
Dubai

-10-

84.07

30,687

116.31

42,452

Page 11 of 11

Instructions for Form 2555

13:06 - 12-SEP-2007

The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

2007 Limits on Housing Expenses
Country
United Kingdom

Limit on Housing
Expenses (daily)

City or Other Location

Limit on Housing
Expenses (full year)

Basingstoke

112.60

41,099

Bath

112.33

41,000

Bracknell

170.14

62,100

Bristol

106.03

38,700

Cambridge

117.81

43,000

Caversham

202.19

73,800

Cheltenham

128.22

46,800

Chicksands

72.60

26,500

Croughton

105.75

38,600

Fairford

108.77

39,700

Farnborough

141.92

51,800

Felixstowe

123.29

45,000

Gibraltar

122.24

44,616

Harrogate

119.18

43,500

High Wycombe

170.14

62,100

Kemble

108.77

39,700

Lakenheath

150.96

55,100

Liverpool

106.30

38,800

London

213.15

77,800

Loudwater

143.84

52,500

Menwith Hill

119.18

43,500

Mildenhall

150.96

55,100

Oxfordshire

105.75

38,600

Plymouth

105.75

38,600

Portsmouth

105.75

38,600

Reading

170.14

62,100

Rochester

109.32

39,900

Southampton

121.10

44,200

Surrey

132.61

48,402

Waterbeach

120.27

43,900

West Byfleet

72.33

26,400

Wiltshire

113.97

41,600

All cities other than Basingstoke,
Bath, Belfast, Birmingham,
Bracknell, Bristol, Brough, Bude,
Cambridge, Caversham,
Chelmsford, Cheltenham,
Chicksands, Croughton,
Dunstable, Edinburgh, Edzell,
Fairford, Farnborough,
Felixstowe, Ft. Halstead,
Gibraltar, Glenrothes, Greenham
Common, Harrogate, High
Wycombe, Hythe, Kemble,
Lakenheath, Liverpool, London,
Loudwater, Menwith Hill,
Mildenhall, Nottingham,
Oxfordshire, Plymouth,
Portsmouth, Reading,
Rochester, Southampton,
Surrey, Waterbeach, Welford,
West Byfleet, and Wiltshire

104.93

38,300

Venezuela

Caracas

156.16

57,000

Vietnam

Hanoi

128.22

46,800

-11-