U.S. Individual Income Tax Return

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Instructions for Form 2555 (2009)

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2009

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
61 (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
Exclusion amount. For 2009, the
maximum exclusion has increased to
$91,400.

Purpose of Form
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.
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 $91,400, 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.

General Information
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.
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.
Foreign country. A foreign country is
any territory under the sovereignty of a
government other than that of the United
States.
The term “foreign country” includes the
country’s territorial waters and airspace,
but not international waters and the
airspace above them. It also includes the
seabed and subsoil of those submarine
areas adjacent to the country’s territorial
waters over which it has exclusive rights
under international law to explore and
exploit the natural resources.
The term “foreign country ” does not
include U.S. possessions or territories. It
does not include the Antarctic region.

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, earlier),
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.

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.
• 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.
Cat. No. 11901A

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, 1201 N.
Mitsubishi Motorway, Bloomington, IL
61705-6613. 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 the only countries that
qualify for the waiver for the previous year
and the dates they qualify. 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 2009
Form 2555.

When To File
A 2009 calendar year Form 1040 is
generally due April 15, 2010.
However, you are automatically
granted a 2-month extension of time to
file (to June 15, 2010, for a 2009 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, 2010, for a
2009 calendar year return) until it is paid.

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Instructions for Form 2555 (2009)

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When to claim the exclusion(s). The
first year you plan to take the foreign
earned income exclusion and/or the
housing exclusion or deduction, you may
not yet have met either the physical
presence test or the bona fide residence
test by the due date of your return
(including the automatic 2-month
extension, discussed earlier.) If this
occurs, you can either:
1. Apply for a special extension to a
date after you expect to qualify, or
2. File your return timely without
claiming the exclusion and then file an
amended return after you qualify.
Special extension of time. 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 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.
Amended return. File Form 1040X,
Amended U.S. Individual Income Tax
Return, to change a return you already
filed. Generally, Form 1040X must be
filed within 3 years after the date the
original return was filed or within 2 years
after the date the tax was paid, whichever
is later.

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 either of the exclusions or the
housing deduction, 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.
Foreign tax credit or deduction. 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.
IRA deduction. If you claim either of the
exclusions, special rules apply in figuring
the amount of your IRA deduction. For
details, see Pub. 590, Individual
Retirement Arrangements (IRAs).

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.
Line 10. Enter the dates your bona fide
residence began and ended. If you are
still a bona fide resident, enter
“Continues” in the space for the date
your bona fide residence ended.
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

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of 12 months in a row. A full day means
the 24-hour period that starts at midnight.
To figure 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, include in income on
Form 1040, the foreign earned income
you received during the tax year
regardless of when you earned it. (For
example, include wages on Form 1040,
line 7.)
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 2008 in 2009,
that income may be treated as earned in
2009. If you cannot treat that salary
payment as income earned in 2009, 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
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 2008 moving expense
deduction allocable to 2009 that is
included in your 2009 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.
Instructions for Form 2555 (2009)

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Instructions for Form 2555 (2009)

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Income received in prior year. Foreign
earned income received in 2008 for
services you performed in 2009 can be
excluded from your 2008 gross income if,
and to the extent, the income would have
been excludable if you had received it in
2009. To claim the additional exclusion,
you must amend your 2008 tax return. To
do this, file Form 1040X.
Income earned in prior year. Foreign
earned income received in 2009 for
services you performed in 2008 can be
excluded from your 2009 gross income if,
and to the extent, the income would have
been excludable if you had received it in
2008.
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 2008 on Form 2555 to the
left of line 45. Next to the amount enter
“Exclusion of Income Earned in 2008.”
Include it in the total reported on line 45.
Note. If you claimed any deduction,
credit, or exclusion on your 2008 return
that is definitely related to the 2008
foreign earned income you are excluding
under this rule, you may have to amend
your 2008 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.

Limit on Housing Expenses
Worksheet — Line 29b

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
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

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
2009 tax year is 365, DO NOT complete this worksheet. Instead, enter $27,420 on line 29b.
1. Enter the number of days in your qualifying period that fall within the
2009 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 $75.12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.

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

4.

Instructions for Form 2555 (2009)

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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
• 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 2009, for most locations,
this limit is $27,420 (30 percent of
$91,400) if your qualifying period includes
all of 2009 (or $75.12 per day if the
number of days in your qualifying period
that fall within your 2009 tax year is less
than 365).

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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 2009
tax year is less than 365, use the Limit on
Housing Expenses Worksheet on page 3
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 $27,420 on
line 29b.
Example. For 2009, because your
location is not listed in the table beginning
on page 5, your limit on housing
expenses is $75.12 per day ($27,420
divided by 365). If you file a calendar year
return and your qualifying period is
January 1, 2009, to October 1, 2009 (274
days), you would enter $20,583 on line
29b ($75.12 multiplied by 274 days).
More than one foreign location. If
you moved during the 2009 tax year and
incurred housing expenses in more than
one foreign location as a result, complete
the Limit on Housing Expenses
Worksheet on page 3 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 2009 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
2009 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
2009 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, 2009. You maintain
the tax home and residence until January
31, 2011. You are a calendar year
taxpayer. The number of days in your

!

Housing Deduction Carryover
Worksheet — Line 49

qualifying period that fall within your 2009
tax year is 140 (August 14 through
December 31, 2009).
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 for the housing deduction, 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
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

Keep for Your Records

1. Enter the amount from your 2008 Form 2555, line 46 . . . . . . . . . .

1.

2. Enter the amount from your 2008 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 2009 Form 2555. You do not have any housing
deduction carryover from 2008 . . . . . . . . . . . . . . . . . . . . . . . . . .

3.

4. Enter the amount from your 2009 Form 2555, line 47 . . . . . . . . . .

4.

5. Enter the amount from your 2009 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 2009
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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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.

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.
Line 49. Use the housing deduction
carryover worksheet on this page to figure
your carryover from 2008.
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 2010 tax year. If you cannot deduct
the excess in 2010 because of the 2010
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.

Instructions for Form 2555 (2009)

Page 5 of 12

Instructions for Form 2555 (2009)

7:11 - 1-DEC-2009

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

2009 Limits on Housing Expenses
Country

City or Other Location

Limit on Housing
Expenses (daily)

Limit on Housing
Expenses (full year)

Argentina

Buenos Aires

126.30

46,100

Australia

Brisbane

81.64

29,800

Canberra

76.71

28,000

Gold Coast

81.64

29,800

Melbourne

79.18

28,900

Oakey

81.64

29,800

Perth

119.18

43,500

81.64

29,800
35,400

Toowoomba
Austria

Vienna

96.99

Bahamas, The

Nassau

136.16

49,700

120.55

44,000

103.29

37,700

Bahrain
Barbados
Belgium

Antwerp

116.99

42,700

Brussels

158.08

57,700

Gosselies

110.41

40,300

Hoogbuul

116.99

42,700

Mons

110.41

40,300

SHAPE/Chievres

110.41

40,300

246.58

90,000

Bermuda
Bosnia-Herzegovina

Sarajevo

Brazil

Brasilia
Rio de Janeiro

Canada

90.14

32,900

121.64

44,400

96.16

35,100

Sao Paulo

127.40

46,500

Calgary

111.23

40,600

Dartmouth

95.89

35,000

Edmonton

101.10

36,900

95.89

35,000

Halifax
London, Ontario

81.64

29,800

Montreal

158.63

57,900

Ottawa

131.23

47,900

Toronto

130.14

47,500

Vancouver

126.03

46,000

95.34

34,800

82.74

30,200

Victoria
Winnipeg
Cayman Islands

Grand Cayman

131.51

48,000

Chile

Santiago

124.66

45,500

China

Colombia

Beijing

134.62

49,137

Hong Kong

313.15

114,300

Shanghai

156.17

57,001

Bogota

148.22

54,100

All cities other than Bogota and
Barranquilla

123.01

44,900

Denmark

Copenhagen

119.74

43,704

Dominican Republic

Santo Domingo

124.66

45,500

Ecuador

Guayaquil

84.38

30,800

Quito

83.56

30,500

Estonia

Tallinn

127.67

46,600

France

Garches

274.25

100,100

Le Havre

115.07

42,000

Lyon

155.89

56,900

Instructions for Form 2555 (2009)

-5-

Page 6 of 12

Instructions for Form 2555 (2009)

7:11 - 1-DEC-2009

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

2009 Limits on Housing Expenses
Limit on Housing
Expenses (daily)

Limit on Housing
Expenses (full year)

Marseille

143.56

52,400

Montpellier

127.12

46,400

Paris

274.25

100,100

Sevres

274.25

100,100

Suresnes

274.25

100,100

Versailles

274.25

100,100

Babenhausen

134.52

49,100

Bad Aibling

114.79

41,900

Bad Nauheim

107.40

39,200

Baumholder

122.19

44,600

Berlin

164.38

60,000

Birkenfeld

122.19

44,600

Boeblingen

146.30

53,400

Butzbach

105.21

38,400

Darmstadt

134.52

49,100

Country
France (Continued)

Germany

City or Other Location

Erlangen

85.21

31,100

Frankfurt am Main

140.27

51,200

Friedberg

107.40

39,200

85.21

31,100

Fuerth
Garmisch-Partenkirchen
Geilenkirchen

116.16

42,400

92.60

33,800

Gelnhausen

145.48

53,100

Germersheim

102.19

37,300

Giebelstadt

116.71

42,600

Giessen

105.21

38,400

Grafenwoehr

114.79

41,900

Hanau

145.48

53,100

Hannover

100.27

36,600

Heidelberg

134.25

49,000

Idar-Oberstein

122.19

44,600

Ingolstadt

169.86

62,000

Kaiserslautern, Landkreis

149.59

54,600

Kitzingen

116.71

42,600

Leimen

134.25

49,000

Ludwigsburg

146.30

53,400

Mainz

164.93

60,200

Mannheim

134.25

49,000

Munich

169.86

62,000

Nellingen

146.30

53,400

Neubruecke

122.19

44,600

85.21

31,100

Ober Ramstadt

134.52

49,100

Oberammergau

116.16

42,400

Pirmasens

149.59

54,600

Rheinau

134.25

49,000

Nuernberg

Schwabach

85.21

31,100

Schwetzingen

134.25

49,000

Seckenheim

134.25

49,000

Sembach

149.59

54,600

Stuttgart

146.30

53,400

-6-

Instructions for Form 2555 (2009)

Page 7 of 12

Instructions for Form 2555 (2009)

7:11 - 1-DEC-2009

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

2009 Limits on Housing Expenses
Limit on Housing
Expenses (daily)

Limit on Housing
Expenses (full year)

Wertheim

116.71

42,600

Wiesbaden

164.93

60,200

Wuerzburg

116.71

42,600

85.21

31,100

Zweibrueken

149.59

54,600

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, Mayen,
Moenchen-Gladbach, Muenster,
Munich, Nellingen, Neubruecke,
Noervenich, Nuernberg, Ober
Ramstadt, Oberammergau,
Osterholz-Scharmbeck,
Pirmasens, Rheinau, Rheinberg,
Schwabach, Schwetzingen,
Seckenheim, Sembach,
Stuttgart, Twisteden, Wahn,
Wertheim, Wiesbaden, Worms,
Wuerzburg, Zirndorf, and
Zweibrueken

125.75

45,900

Argyroupolis

104.93

38,300

Athens

108.22

39,500

Elefsis

108.22

39,500

Ellinikon

108.22

39,500

Mt. Hortiatis

104.93

38,300

Country
Germany (Continued)

City or Other Location

Zirndorf

Greece

Mt. Parnis

108.22

39,500

Mt. Pateras

108.22

39,500

Nea Makri

108.22

39,500

Perivolaki

104.93

38,300

Piraeus

108.22

39,500

Souda Bay (Crete)

Guatemala

83.84

30,600

Tanagra

108.22

39,500

Thessaloniki

104.93

38,300

Guatemala City

103.01

37,600

182.74

66,700

Holy See, The
Hungary

Budapest

India

Mumbai
New Delhi

89.04

32,500

186.08

67,920

82.88

30,252

Indonesia

Jakarta

103.50

37,776

Ireland

Dublin

158.63

57,900

89.59

32,700

Limerick
Shannon Area
Italy

Catania

Instructions for Form 2555 (2009)

-7-

89.59

32,700

106.85

39,000

Page 8 of 12

Instructions for Form 2555 (2009)

7:11 - 1-DEC-2009

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

2009 Limits on Housing Expenses
Country
Italy (Continued)

Limit on Housing
Expenses (daily)

City or Other Location

Limit on Housing
Expenses (full year)

Gaeta

77.26

28,200

Genoa

110.68

40,400

85.48

31,200

Gioia Tauro
La Spezia

110.68

40,400

Leghorn

114.52

41,800

Milan

272.88

99,600

Naples

150.68

55,000

Pisa

114.52

41,800

Pordenone-Aviano

126.03

46,000

Rome

182.74

66,700

93.70

34,200

Sardinia
Sigonella

106.85

39,000

Turin

136.44

49,800

Verona

87.12

31,800

Vicenza

127.12

46,400

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

104.93

38,300

Jamaica

Kingston

112.88

41,200

Japan

Akashi

86.30

31,500

Akizuki

75.89

27,700

Atsugi

108.77

39,700

Camp Zama

108.77

39,700

Chiba-Ken

108.77

39,700

Fussa

108.77

39,700

80.00

29,200

Gifu
Gotemba

82.19

30,000

Haneda

108.77

39,700

Kanagawa-Ken

108.77

39,700

80.00

29,200

Komaki
Machida-Shi

108.77

39,700

Misawa

79.18

28,900

Nagoya

103.52

37,786

Okinawa Prefecture

133.42

48,700

Osaka-Kobe

145.30

53,036

Sagamihara

108.77

39,700

Saitama-Ken

108.77

39,700

81.64

29,800

Sasebo
Tachikawa

108.77

39,700

Tokyo

258.08

94,200

Tokyo-to

108.77

39,700

Yokohama

138.63

50,600

Yokosuka

118.90

43,400

Yokota

108.77

39,700

Kazakhstan

Almaty

131.51

48,000

Korea

Camp Carroll

80.27

29,300

Camp Colbern

179.18

65,400

Camp Market

179.18

65,400

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Instructions for Form 2555 (2009)

Page 9 of 12

Instructions for Form 2555 (2009)

7:11 - 1-DEC-2009

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

2009 Limits on Housing Expenses
Country
Korea (Continued)

Limit on Housing
Expenses (daily)

City or Other Location
Camp Mercer
Chinhae
Chunchon
K-16
Kimhae
Kimpo Airfield

65,400

83.01

30,300

76.99

28,100

179.18

65,400

86.03

31,400

179.18

65,400

82.19

30,000

Munsan

75.62

27,600

Osan AB

93.42

34,100

Pusan

86.03

31,400

Pyongtaek

93.42

34,100

Seoul

179.18

65,400

Suwon

179.18

65,400

Taegu

100.27

36,600

75.62

27,600

Uijongbu

106.85

39,000

Waegwan

80.27

29,300

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

87.40

31,900

Kuwait City

178.36

65,100

All cities other than Kuwait City

159.73

58,300

149.86

54,700

96.99

35,400

Luxembourg
Macedonia

Skopje

Malaysia

Kuala Lumpur
All cities other than Kuala Lumpur

Malta
Mexico

179.18

Kwangju

Tongduchon

Kuwait

Limit on Housing
Expenses (full year)

139.18

50,800

92.33

33,700

123.29

45,000

Hermosillo

98.63

36,000

Mazatlan

88.77

32,400

Merida

103.84

37,900

Mexico City

125.75

45,900

Monterrey

117.53

42,900

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

107.95

39,400

Micronesia

Pohnpei

Netherlands

Amsterdam
Aruba

75.34

27,500

144.93

52,900

98.63

36,000

Brunssum

103.56

37,800

Eygelshoven

103.56

37,800

Hague, The

187.67

68,500

Heerlen

103.56

37,800

Hoensbroek

103.56

37,800

Hulsberg

103.56

37,800

Instructions for Form 2555 (2009)

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Page 10 of 12

Instructions for Form 2555 (2009)

7:11 - 1-DEC-2009

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

2009 Limits on Housing Expenses
Limit on Housing
Expenses (daily)

Limit on Housing
Expenses (full year)

Kerkrade

103.56

37,800

Landgraaf

103.56

37,800

Maastricht

103.56

37,800

Papendrecht

131.23

47,900

Rotterdam

131.23

47,900

Schaesburg

103.56

37,800

Schinnen

103.56

37,800

Schiphol

144.93

52,900

Ypenburg

187.67

68,500

95.89

35,000

102.19

37,300

Country
Netherlands (Continued)

City or Other Location

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
Netherlands Antilles
New Zealand
Nicaragua
Norway

Panama
Philippines

Curacao
Auckland

97.81

35,700

Wellington

92.60

33,800

Managua

87.12

31,800

Oslo

159.73

58,300

Stavanger

108.49

39,600

All cities other than Oslo and
Stavanger

103.29

37,700

97.26

35,500

Panama City
Cavite

98.63

36,000

Manila

98.63

36,000

All cities other than Cavite and
Manila

76.44

27,900

80.55

29,400

Poland
Portugal

Alverca

167.12

61,000

82.47

30,100

Lisbon

167.12

61,000

Doha

99.35

36,264

All cities other than Doha

88.77

32,400

Moscow

249.04

90,900

Saint Petersburg

120.00

43,800

Sakhalin Island

212.33

77,500

Lajes Field
Qatar
Russia

Rwanda
Saudi Arabia

Vladivostok

212.33

77,500

Yekaterinburg

129.86

47,400

86.30

31,500

Kigali
Jeddah

84.02

30,667

Riyadh

87.67

32,000

176.71

64,500
40,200

Singapore
South Africa

Pretoria

110.14

Spain

Barcelona

111.23

40,600

Madrid

123.84

45,200

Rota

106.30

38,800

Valencia

127.95

46,700

76.44

27,900

162.74

59,400

All cities other than Barcelona,
Madrid, Rota, and Valencia
Switzerland

Bern

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Instructions for Form 2555 (2009)

Page 11 of 12

Instructions for Form 2555 (2009)

7:11 - 1-DEC-2009

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

2009 Limits on Housing Expenses
Limit on Housing
Expenses (daily)

Limit on Housing
Expenses (full year)

Geneva

230.41

84,100

Zurich

107.45

39,219

Country
Switzerland (Continued)

City or Other Location

All cities other than Bern, Geneva,
and Zurich

90.14

32,900

Taiwan

Taipei

126.54

46,188

Thailand

Bangkok

140.00

51,100

Turkey

Ukraine
United Arab Emirates
United Kingdom

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

197.26

72,000

Kiev
Abu Dhabi

136.13

49,687

Dubai

156.64

57,174

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

Croughton

118.08

43,100

Fairford

112.33

41,000

Farnborough

149.86

54,700

Felixstowe

123.29

45,000

Gibraltar

122.24

44,616

Harrogate

127.12

46,400

High Wycombe

170.14

62,100

Kemble

112.33

41,000

Lakenheath

150.96

55,100

Liverpool

106.30

38,800

London

227.12

82,900

Loudwater

173.97

63,500

Menwith Hill

127.12

46,400

Mildenhall

150.96

55,100

Oxfordshire

118.08

43,100

Plymouth

118.08

43,100

Portsmouth

118.08

43,100

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

Wiltshire

113.97

41,600

Instructions for Form 2555 (2009)

-11-

Page 12 of 12

Instructions for Form 2555 (2009)

7:11 - 1-DEC-2009

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

2009 Limits on Housing Expenses
Country

Limit on Housing
Expenses (daily)

City or Other Location

Limit on Housing
Expenses (full year)

United Kingdom (Continued)

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

114.25

41,700

Venezuela

Caracas

156.16

57,000

Hanoi

128.22

46,800

Ho Chi Minh City

115.07

42,000

Vietnam

-12-

Instructions for Form 2555 (2009)