U.S. Individual Income Tax Return

2012

Instructions for Form 2555

Department of the Treasury
Internal Revenue Service

Foreign Earned Income
Section references are to the Internal Revenue
Code unless otherwise noted.

Future Developments

For the latest information about
developments related to Form 2555 and
its instructions, such as legislation
enacted after they were published, go to
www.irs.gov/form2555.

What's New
Exclusion amount. For 2012, the
maximum exclusion has increased to
$95,100.

General Instructions
Do not include on Form 1040,
line 62 (federal income tax
CAUTION
withheld), 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.

!

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 $95,100, 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.

Nov 06, 2012

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 or the physical presence test,
discussed later.
Note. Income from working abroad as an
employee of the U.S. Government does
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
Cat. No. 11901A

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.

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) at 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 Form 2555.

When To File

A 2012 calendar year Form 1040 is
generally due April 15, 2013.
However, you are automatically
granted a 2-month extension of time to file
(to June 17, 2013, for a 2012 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, you
will owe interest on any tax not paid by the
regular due date of your return.
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
73301-0045, 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).

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Specific Instructions
Part I
Line 1. Enter entire address including
city, province or state, country, and postal
code. If using a military or diplomatic
address, include the country in which you
are living or stationed.

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.
Whether you are a bona fide resident of
a foreign country depends on 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.
Instructions for Form 2555 (2012)

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 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.
Line 16. The 12-month period on which
the physical presence test is based must
include 365 or 366 days, part of which
must be in 2012. The dates may begin or
end in a calendar year other than 2012.
You must enter dates in both
spaces provided on line 16. Do
not enter “Continues” in the
space for the ending date.

TIP

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 2011 in 2012, that
income may be treated as earned in 2012.
If you cannot treat that salary payment as
income earned in 2012, 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
Instructions for Form 2555 (2012)

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 benefits and railroad
retirement benefits treated as social
security).
Interest, ordinary dividends, capital
gains, alimony, etc.
Portion of 2011 moving expense
deduction allocable to 2012 that is
included in your 2012 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 2011 for
services you performed in 2012 can be
excluded from your 2011 gross income if,
and to the extent, the income would have
been excludable if you had received it in
2012. To claim the additional exclusion,
you must amend your 2011 tax return. To
do this, file Form 1040X.
Income earned in prior year. Foreign
earned income received in 2012 for
services you performed in 2011 can be
excluded from your 2012 gross income if,
and to the extent, the income would have
been excludable if you had received it in
2011.
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 2011 on Form 2555 to the
left of line 45. Next to the amount enter
“Exclusion of Income Earned in 2011.”
Include it in the total reported on line 45.
Note. If you claimed any deduction,
credit, or exclusion on your 2011 return
that is definitely related to the 2011 foreign
earned income you are excluding under
this rule, you may have to amend your
2011 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
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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 the
employer-equivalent portion 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 23. List other foreign earned
income not included on lines 19-22. You
can write “Various” on the dotted lines to
the left of the entry space if you have other
foreign earned income from multiple
sources.
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
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,

Limit on Housing Expenses
Worksheet—Line 29b

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 at the end of the instructions;
otherwise, leave this line blank.
Line 29b. Your housing expenses may
not exceed a certain limit. The limit on
housing expenses varies depending upon

Keep for Your Records

Note. If the location in which you incurred housing expenses is not listed in the table at the
end of the instructions, and the number of days in your qualifying period that fall within the
2012 tax year is 366, DO NOT complete this worksheet. Instead, enter $28,530 on
line 29b.

the location in which you incur housing
expenses. In 2012, for most locations, this
limit is $28,530 (30 percent of $95,100) if
your qualifying period includes all of 2012
(or $77.95 per day if the number of days in
your qualifying period that fall within your
2012 tax year is less than 366).
The table at the end of the instructions
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 2012
tax year is less than 366, use the Limit on
Housing Expenses Worksheet 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
366, enter $28,530 on line 29b.
Example. For 2012, because your
location is not listed in the table at the end
of the instructions, your limit on housing
expenses is $77.95 per day ($28,530
divided by 366). If you file a calendar year
return and your qualifying period is
January 1, 2012, to October 1, 2012 (275
days), you would enter $21,436 on
line 29b ($77.95 multiplied by 275 days).
More than one foreign location. If
you moved during the 2012 tax year and
incurred housing expenses in more than
one foreign location as a result, complete
the Limit on Housing Expenses Worksheet
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.

No. If the amount on line 1 is less than 366, skip line 2 and go
to line 3.

If you moved during the 2012 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
2012 tax year (that is, the number of days
entered on Form 2555, line 31).

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

Line 31. Enter the number of days in your
qualifying period that fall within your 2012
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.

1. Enter the number of days in your qualifying period that fall within . .
the 2012 tax year (see the instructions for line 31) . . . . . . . . . . . .
1.
2. Did you enter 366 on line 1?

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 at the end of the instructions for the location
in which you incurred housing expenses. If the location is not
listed in the table, enter $77.95 . . . . . . . . . . . . . . . . . . . . . . . . . .
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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!

Example. You establish a tax home
and bona fide residence in a foreign
country on August 14, 2012. You maintain
the tax home and residence until January
31, 2014. You are a calendar year
taxpayer. The number of days in your
qualifying period that fall within your 2012
tax year is 140 (August 14 through
December 31, 2012).
Instructions for Form 2555 (2012)

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

Housing Deduction Carryover
Worksheet—Line 49

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
deductible part 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 2011.
One-year carryover. If the amount on
line 46 is more than the amount on line 47,

Keep for Your Records

1. Enter the amount from your 2011 Form 2555, line 46 . . . . . . . . . . . 1.
2. Enter the amount from your 2011 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 2012 Form 2555. You do not have any housing
deduction carryover from 2011 . . . . . . . . . . . . . . . . . . . . . . . . . .
3.
4. Enter the amount from your 2012 Form 2555, line 47 . . . . . . . . . . . 4.
5. Enter the amount from your 2012 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
2012 Form 2555. If line 3 is more than line 6, you cannot carry
the difference over to any future tax year . . . . . . . . . . . . . . . . . .

Instructions for Form 2555 (2012)

▶7..

-5-

you can carry the difference over to your
2013 tax year. If you cannot deduct the
excess in 2013 because of the 2013 limit,
you cannot carry it over to any future tax
year.

2012 LIMITS ON HOUSING EXPENSES

Austria
Bahamas, The
Bahrain
Barbados
Belgium

Bermuda
Bosnia-Herzegovina
Brazil
Canada

Cayman Islands
Chile
China
Colombia
Costa Rica
Denmark
Dominican Republic
Ecuador
Estonia
France

Antwerp
Brussels
Gosselies
Hoogbuul
Mons
SHAPE/Chievres
Sarajevo
Brasilia
Rio de Janeiro
Sao Paulo
Calgary
Dartmouth
Edmonton
Halifax
London, Ontario
Montreal
Ottawa
Toronto
Vancouver
Victoria
Winnipeg
Grand Cayman
Santiago
Beijing
Hong Kong
Shanghai
Bogota
All cities other than Bogota
San Jose
Copenhagen
Santo Domingo
Guayaquil
Quito
Tallinn
Garches
Le Havre
Lyon
Marseille
Montpellier
Paris
Sevres
Suresnes
Versailles

-6-

Limit on Housing
Expenses (full year)
84,000
56,500
32,800
32,400
30,600
32,400
41,500
32,400
44,400
32,782
32,400
35,400
49,700
44,000
37,700
36,100
47,700
43,300
36,100
43,300
43,300
90,000
30,600
52,800
35,100
56,600
39,900
34,200
35,500
34,200
30,300
56,500
49,800
49,300
47,000
33,500
33,000
48,000
51,300
71,200
114,300
57,001
54,100
49,400
32,000
43,704
45,500
30,800
32,400
46,600
84,800
35,200
49,000
45,700
39,500
84,800
84,800
84,800
84,800
.

Angola
Argentina
Australia

Limit on Housing
Expenses (daily)
229.51
154.37
89.62
88.52
83.61
88.52
113.39
88.52
121.31
89.57
88.52
96.72
135.79
120.22
103.01
98.63
130.33
118.31
98.63
118.31
118.31
245.90
83.61
144.26
95.90
154.64
109.02
93.44
96.99
93.44
82.79
154.37
136.07
134.70
128.42
91.53
90.16
131.15
140.16
194.54
312.30
155.74
147.81
134.97
87.43
119.41
124.32
84.15
88.52
127.32
231.69
96.17
133.88
124.86
107.92
231.69
231.69
231.69
231.69

City or Other Location
Luanda
Buenos Aires
Adelaide
Brisbane
Darwin, Northern Country
Gold Coast
Melbourne
Oakey
Perth
Sydney
Toowoomba
Vienna
Nassau

.

Country

Instructions for Form 2555 (2012)

2012 LIMITS ON HOUSING EXPENSES

Germany

Country

Limit on Housing
Expenses (daily)
113.66
96.99
90.98
108.47
138.80
108.47
137.70
114.75
88.80
153.55
113.66
118.58
90.98
103.55
143.17
85.79
98.09
98.36
111.75
143.17
84.70
107.65
108.47
160.11
139.07
98.09
107.65
137.70
153.55
107.65
160.11
137.70
108.47
113.66
103.55
139.07
107.65
107.65

City or Other Location
Babenhausen
Bad Aibling
Bad Nauheim
Baumholder
Berlin
Birkenfeld
Boeblingen
Bonn
Butzbach
Cologne
Darmstadt
Frankfurt am Main
Friedberg
Garmisch-Partenkirchen
Gelnhausen
Germersheim
Giebelstadt
Giessen
Grafenwoehr
Hanau
Hannover
Heidelberg
Idar-Oberstein
Ingolstadt
Kaiserslautern, Landkreis
Kitzingen
Leimen
Ludwigsburg
Mainz
Mannheim
Munich
Nellingen
Neubruecke
Ober Ramstadt
Oberammergau
Pirmasens
Rheinau
Schwetzingen

Instructions for Form 2555 (2012)

-7-

Limit on Housing
Expenses (full year)
41,600
35,500
33,300
39,700
50,800
39,700
50,400
42,000
32,500
56,200
41,600
43,400
33,300
37,900
52,400
31,400
35,900
36,000
40,900
52,400
31,000
39,400
39,700
58,600
50,900
35,900
39,400
50,400
56,200
39,400
58,600
50,400
39,700
41,600
37,900
50,900
39,400
39,400

2012 LIMITS ON HOUSING EXPENSES

Country
Germany (Continued)

Ghana
Greece

Guatemala
Guyana
Holy See, The
Hungary
India

City or Other Location
Seckenheim
Sembach
Stuttgart
Vilseck
Wahn
Wertheim
Wiesbaden
Wuerzburg
Zweibruecken
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, Vilseck,
Wahn, Wertheim, Wiesbaden,
Worms, Wuerzburg, Zirndorf,
and Zweibruecken
Accra
Argyroupolis
Athens
Elefsis
Ellinikon
Mt. Hortiatis
Mt. Parnis
Mt. Pateras
Nea Makri
Perivolaki
Piraeus
Tanagra
Thessaloniki
Guatemala City
Georgetown
Budapest
Papa
Mumbai

-8-

Limit on Housing
Expenses (daily)
107.65
139.07
137.70
111.75
114.75
98.09
153.55
98.09
139.07

110.11
98.36
88.52
113.66
113.66
113.66
88.52
113.66
113.66
113.66
88.52
113.66
113.66
88.52
115.03
95.63
154.37
88.80
121.58
185.57

Limit on Housing
Expenses (full year)
39,400
50,900
50,400
40,900
42,000
35,900
56,200
35,900
50,900

40,300
36,000
32,400
41,600
41,600
41,600
32,400
41,600
41,600
41,600
32,400
41,600
41,600
32,400
42,100
35,000
56,500
32,500
44,500
67,920

Instructions for Form 2555 (2012)

2012 LIMITS ON HOUSING EXPENSES

Country
India (Continued)
Indonesia
Ireland
Israel
Italy

Jamaica
Japan

Kazakhstan

City or Other Location
New Delhi
Jakarta
Dublin
Shannon Area
Tel Aviv
Catania
Genoa
Gioia Tauro
La Spezia
Leghorn
Milan
Naples
Parma
Pisa
Pordenone-Aviano
Rome
Sardinia
Sigonella
Turin
Vicenza
All cities other than Avellino,
Brindisi, Catania, Florence,
Gaeta, Genoa, Gioia Tauro, La
Spezia, Leghorn, Milan, Mount
Vergine, Naples, Nettuno,
Parma, Pisa,
Pordenone-Aviano, Rome,
Sardinia, Sigonella, Turin,
Verona, and Vicenza
Kingston
Akashi
Akizuki
Atsugi
Camp Zama
Chiba-Ken
Fussa
Gifu
Gotemba
Haneda
Iwakuni
Kanagawa-Ken
Komaki
Machida-Shi
Misawa
Nagoya
Okinawa Prefecture
Osaka-Kobe
Sagamihara
Saitama-Ken
Sasebo
Tachikawa
Tokyo
Tokyo-to
Yokohama
Yokosuka
Yokota
Almaty

Instructions for Form 2555 (2012)

-9-

Limit on Housing
Expenses (daily)
82.66
103.21
134.15
106.01
138.80
90.16
114.21
85.25
110.38
96.72
230.60
146.45
117.21
96.72
117.21
154.37
79.23
90.16
115.30
118.31

Limit on Housing
Expenses (full year)
30,252
37,776
49,100
38,800
50,800
33,000
41,800
31,200
40,400
35,400
84,400
53,600
42,900
35,400
42,900
56,500
29,000
33,000
42,200
43,300

92.62
112.57
116.67
102.73
150.55
150.55
150.55
150.55
203.01
111.48
150.55
117.76
150.55
203.01
150.55
126.50
203.01
202.73
247.72
150.55
150.55
126.23
150.55
349.73
150.55
189.34
175.68
150.55
131.15

33,900
41,200
42,700
37,600
55,100
55,100
55,100
55,100
74,300
40,800
55,100
43,100
55,100
74,300
55,100
46,300
74,300
74,200
90,664
55,100
55,100
46,200
55,100
128,000
55,100
69,300
64,300
55,100
48,000

2012 LIMITS ON HOUSING EXPENSES

Korea

Kuwait
Luxembourg
Macedonia
Malaysia
Malta
Mexico

Mozambique
Namibia
Netherlands

Country

Limit on Housing
Expenses (daily)
83.06
143.44
143.44
143.44
143.44
78.14
143.44
87.98
90.71
78.14
89.07
143.44
143.44
86.07
78.96
84.97
83.06

City or Other Location
Camp Carroll
Camp Colbern
Camp Market
Camp Mercer
K-16
Kimhae
Kimpo Airfield
Munsan
Osan AB
Pusan
Pyongtaek
Seoul
Suwon
Taegu
Tongduchon
Uijongbu
Waegwan
All cities other than Ammo Depot
#9, Camp Carroll, Camp
Colbern, Camp Market, Camp
Mercer, Changwon, Chinhae,
Chunchon, K-16, Kimhae,
Kimpo Airfield, Kunsun,
Kwangju, Munsan, Osan AB,
Pusan, Pyongtaek, Seoul,
Suwon, Taegu, Tongduchon,
Uijongbu, and Waegwan
Kuwait City
All cities other than Kuwait City
Luxembourg
Skopje
Kuala Lumpur
All cities other than Kuala Lumpur
Mazatlan
Merida
Mexico City
Monterrey
All cities other than Ciudad Juarez,
Cuernavaca, Guadalajara,
Hermosillo, Matamoros,
Mazatlan, Merida, Metapa,
Mexico City, Monterrey,
Nogales, Nuevo Laredo,
Reynosa, Tapachula, Tijuana,
Tuxtla Gutierrez, and Veracruz
Maputo
Windhoek
Amsterdam
Aruba
Brunssum
Eygelshoven
Hague, The
Heerlen
Hoensbroek
Hulsberg
Kerkrade
Landgraaf
Maastricht
Papendrecht
Rotterdam
Schaesburg
Schinnen
Schiphol
Ypenburg
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

-10-

Limit on Housing
Expenses (full year)
30,400
52,500
52,500
52,500
52,500
28,600
52,500
32,200
33,200
28,600
32,600
52,500
52,500
31,500
28,900
31,100
30,400

82.79
175.96
157.65
126.50
96.72
126.23
92.08
137.98
84.70
103.55
118.58
90.71

30,300
64,400
57,700
46,300
35,400
46,200
33,700
50,500
31,000
37,900
43,400
33,200

107.65
107.92
87.70
144.54
98.36
108.74
108.74
183.88
108.74
108.74
108.74
108.74
108.74
108.74
110.93
110.93
108.74
108.74
144.54
183.88

39,400
39,500
32,100
52,900
36,000
39,800
39,800
67,300
39,800
39,800
39,800
39,800
39,800
39,800
40,600
40,600
39,800
39,800
52,900
67,300

110.93

40,600

Instructions for Form 2555 (2012)

2012 LIMITS ON HOUSING EXPENSES

Country
Netherlands Antilles
New Zealand
Nicaragua
Nigeria
Norway

Panama
Philippines
Poland
Portugal
Qatar
Russia

Rwanda
Saudi Arabia
Singapore
South Africa
Spain

Suriname
Switzerland

Taiwan
Tanzania
Thailand
Trinidad and Tobago
Turkey
Ukraine
United Arab Emirates

City or Other Location
Curacao
Auckland
Wellington
Managua
Abuja
Oslo
Stavanger
All cities other than Oslo and
Stavanger
Panama City
Cavite
Manila
Alverca
Lisbon
Doha
All cities other than Doha
Moscow
Saint Petersburg
Sakhalin Island
Vladivostok
Yekaterinburg
Kigali
Jeddah
Riyadh
Pretoria
Barcelona
Madrid
Rota
Valencia
All cities other than Barcelona,
Madrid, Rota, Seville, Seville
Province, and Valencia
Paramaribo
Bern
Geneva
Zurich
All cities other than Bern, Geneva,
and Zurich
Taipei
Dar Es Salaam
Bangkok
Port of Spain
Izmir-Cigli
Yamanlar
Kiev
Abu Dhabi
Dubai

Instructions for Form 2555 (2012)

-11-

Limit on Housing
Expenses (daily)
125.14
97.54
92.35
86.89
98.36
141.26
119.95

Limit on Housing
Expenses (full year)
45,800
35,700
33,800
31,800
36,000
51,700
43,900

103.01
96.99
106.56
106.56
80.33
141.26
141.26
99.08
88.52
295.08
163.93
211.75
211.75
129.51
86.07
83.79
109.29
184.43
107.38
110.93
188.25
113.39
108.20

37,700
35,500
39,000
39,000
29,400
51,700
51,700
36,264
32,400
108,000
60,000
77,500
77,500
47,400
31,500
30,667
40,000
67,500
39,300
40,600
68,900
41,500
39,600

81.69
90.16
181.69
257.10
107.16

29,900
33,000
66,500
94,100
39,219

89.89
126.20
120.22
161.20
148.91
86.34
86.34
196.72
135.76
156.21

32,900
46,188
44,000
59,000
54,500
31,600
31,600
72,000
49,687
57,174

2012 LIMITS ON HOUSING EXPENSES

Country
United Kingdom

Venezuela
Vietnam

City or Other Location
Basingstoke
Bath
Bracknell
Bristol
Brookwood
Cambridge
Caversham
Cheltenham
Croughton
Fairford
Farnborough
Felixstowe
Gibraltar
Harrogate
High Wycombe
Kemble
Lakenheath
Liverpool
London
Loudwater
Menwith Hill
Mildenhall
Oxfordshire
Plymouth
Portsmouth
Reading
Rochester
Southampton
Surrey
Waterbeach
Wiltshire
All cities other than Basingstoke,
Bath, Belfast, Birmingham,
Bracknell, Bristol, Brookwood,
Brough, 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
Caracas
Hanoi
Ho Chi Minh City

-12-

Limit on Housing
Expenses (daily)
112.29
112.02
169.67
105.74
116.12
117.49
201.64
140.98
117.21
116.94
149.45
111.75
121.90
123.50
169.67
116.94
145.90
106.01
228.42
173.50
123.50
145.90
115.85
115.85
115.85
169.67
120.22
120.77
132.25
119.67
113.66

116.12
155.74
127.87
114.75

Limit on Housing
Expenses (full year)
41,099
41,000
62,100
38,700
42,500
43,000
73,800
51,600
42,900
42,800
54,700
40,900
44,616
45,200
62,100
42,800
53,400
38,800
83,600
63,500
45,200
53,400
42,400
42,400
42,400
62,100
44,000
44,200
48,402
43,800
41,600

42,500
57,000
46,800
42,000

Instructions for Form 2555 (2012)