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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 IRS.gov/Form2555.
What's New
Exclusion amount. For 2023, the maximum exclusion amount
has increased to $120,000.
Reminder
Tax home for individuals serving in a combat zone. Certain
individuals serving in a combat zone in support of the U.S.
Armed Forces may nonetheless establish a tax home in the
foreign country of the combat zone. For more information, see
Tax home test under Who Qualifies, later.
General Instructions
Don't include on Form 1040 or 1040-SR, line 25a or 25b
(federal income tax withheld from Form(s) W-2 or 1099,
CAUTION respectively), any taxes an employer withheld from your
pay that were paid to the foreign country's tax authority instead
of 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 the amount
of your foreign earned income for the year.
General Information
If you are a U.S. citizen or a resident alien living in a foreign
country, you are subject to the same U.S. income tax laws that
apply to U.S. 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.
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” doesn't include U.S. territories. It
doesn't include the Antarctic region.
Who Qualifies
You qualify to exclude your foreign earned income from gross
income if both of the following apply.
• You meet the tax home test (discussed later).
• You meet either the bona fide residence test or the physical
presence test (discussed later).
Oct 16, 2023
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. Don't 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, or countries, not the 12 consecutive
months during which those days occurred.
Note. If you did not live 330 full days in a foreign country, or
countries, during a 12-month period, you are not entitled to claim
the foreign earned income exclusion. The 330 qualifying days do
not have to be consecutive.
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 don't 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 aren't considered to have a tax home in a foreign country
for any period during which your abode is in the United States,
unless you are serving in support of the U.S. Armed Forces in an
area designated as a combat zone. See Service in a combat
zone, later. Otherwise, if your abode is in the United States, you
will not meet the tax home test and cannot claim the foreign
earned income exclusion.
The location of your abode is based on where you maintain
your family, economic, and personal ties. Your abode is not
necessarily in the United States merely because you maintain a
dwelling in the United States, whether or not your spouse and
dependents use the dwelling. Your abode is not necessarily in
the United States while you are temporarily in the United States.
However, these factors can contribute to your having an abode in
the United States.
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 don't meet the tax home
test. You can't claim either of the exclusions or the housing
deduction.
Service in a combat zone. Citizens or residents of the
United States serving in an area designated by the President of
the United States by Executive order as a combat zone for
purposes of section 112 in support of the U.S. Armed Forces can
qualify as having a tax home in a foreign country, even if they
have an abode within the United States. For a list of
IRS-recognized combat zones, go to IRS.gov/Newsroom/
Combat-Zones.
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 can't be counted in determining if you
qualify under the bona fide residence or physical presence test.
• Any income earned in Cuba isn't considered foreign earned
income.
Cat. No. 11901A
• Any housing expenses in Cuba (or housing expenses for your
spouse or dependents in another country while you were in
Cuba) aren't considered qualified housing expenses.
Amended return. File Form 1040-X to change a return you
have already filed. Generally, Form 1040-X 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.
Note. If you performed services at the U.S. Naval Base at
Guantanamo Bay, you were not in violation of U.S. travel
restrictions.
Where To File
Attach Form 2555 to Form 1040 or 1040-SR when filed. Mail
your Form 1040 or 1040-SR to one of the special addresses
designated for those filing Form 2555. Do not mail your Form
1040 or 1040-SR to the addresses associated with your state of
residence if Form 2555 is attached. See the Instructions for Form
1040. The filing addresses are also available at IRS.gov/Filing/
International-Where-To-File-Form-1040-Addresses-forTaxpayers-and-Tax-Professionals.
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 could have reasonably
expected to meet the minimum time requirements if you hadn't
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.
Choosing the Exclusion(s)
To choose either of the exclusions, complete the appropriate
parts of Form 2555 and file it with your Form 1040, 1040-SR, or
1040-X. 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 the exclusion(s), 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 don't wish to claim the
exclusion(s). If you revoke your choice, you can't claim the
exclusion(s) for your next 5 tax years without the approval of the
IRS. See Pub. 54 for more information.
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.
Additional Information
Note. It is not necessary to affirmatively revoke your choice if
you don’t have any foreign earned income.
Pub. 54 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 download this
publication (as well as other forms and publications) at IRS.gov/
Forms.
Additional child tax credit. You can't take the additional child
tax credit if you claim either of the exclusions or the housing
deduction.
Earned income credit. You can't take the earned income credit
if you claim either of the exclusions or the housing deduction.
When To File
Foreign tax credit or deduction. You can't 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 can't claim a credit or
deduction for the foreign taxes paid or accrued on that income. If
only part of your income is excluded, you can't claim a credit or
deduction for the foreign taxes allocable to the excluded income.
See Pub. 514 for details on how to figure the amount allocable to
the excluded income.
A 2023 calendar year Form 1040 or 1040-SR is generally due
April 15, 2024.
However, you are automatically granted a 2-month extension
of time to file (to June 15, 2024, for a 2023 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.
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-A.
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.
Figuring Tax on Income Not Excluded
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.
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 or 1040-SR, line 16. When figuring
your alternative minimum tax on Form 6251, you must use the
Foreign Earned Income Tax Worksheet in the Instructions for
Form 6251.
Special extension of time. To apply for this extension,
complete and file Form 2350 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.
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Instructions for Form 2555 (2023)
Part III
Specific Instructions
Physical Presence Test
Part I
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.
Line 1. Enter your entire address, including city or town, state or
province, country, and ZIP or foreign postal code. If using a
military or diplomatic address, include the country in which you
are living or stationed.
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.
Line 9. Enter your tax home(s) and date(s) established. See Tax
home test under Who Qualifies, earlier.
!
You must complete either Part II or Part III of Form 2555,
but not both parts.
CAUTION
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 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).
• 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
Table 3 at IRS.gov/Individuals/International-Taxpayers/TaxTreaty-Tables for a list of countries with which the United States
has an income tax treaty in effect.
Line 16. The 12-month period on which the physical presence
test is based must include 365 days, part of which must be in
2023. The dates may begin or end in a calendar year other than
2023.
You must enter dates in both spaces provided on line 16.
TIP Don't enter “Continues” in the space for the ending date.
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 or 1040-SR the foreign earned income you received
during the tax year regardless of when you earned it. (For
example, include wages from Form 1040 or 1040-SR, line 1.)
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 aren't 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.
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 2022 in 2023, that income may be
treated as earned in 2023. If you cannot treat that salary
payment as income earned in 2023, the rules explained under
Income earned in prior year, later, apply. See Pub. 54 for more
details.
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.
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.
Lines 12a and 12b. If you check “Yes” on line 12a, enter the
type(s) of family member(s) and the date(s) they lived with you
on line 12b. Acceptable entries for family members on line 12b
include child, foster child, grandchild, parent, grandparent,
brother, sister, aunt, uncle, nephew, niece, son, daughter,
spouse, or other. If you check “No” on line 12a, leave line 12b
blank or enter “None.”
Foreign earned income doesn't include amounts that are
actually a distribution of corporate earnings or profits rather than
a reasonable allowance as compensation for your personal
services.
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 aren't subject to
their income tax laws by reason of nonresidency in the foreign
country, you aren't considered a bona fide resident of that
country.
If you submitted such a statement and the authorities haven't
made an adverse determination of your nonresident status, you
aren't considered a bona fide resident of that country.
Instructions for Form 2555 (2023)
Foreign earned income also doesn't include the following
types of income.
• Pension and annuity income (including social security benefits
and railroad retirement benefits treated as social security).
If you receive a pension from your employment abroad
and don't need a social security agreement between the
CAUTION United States and your country of residence to qualify for
retirement benefits in either country, the amount of your U.S.
benefit may be affected. This is a result of a condition in U.S.
Social Security law called the Windfall Elimination Provision
!
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are considered reasonable to the extent they aren't 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 haven't excluded it on line 25.
Don't 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, don't include the cost of domestic labor, pay television, or
buying furniture or accessories.
Include expenses for housing only during periods for which:
• The value of your housing isn't 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.
(WEP). For more information about the WEP, go to SSA.gov/
International/WEP_Intro.html.
• Interest, ordinary dividends, capital gains, alimony, etc.
• 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 2022 for services you performed in 2023 can be
excluded from your 2022 gross income if, and to the extent, the
income would have been excludable if you had received it in
2023. To claim the additional exclusion, you must amend your
2022 tax return. To do this, file Form 1040-X.
Income earned in prior year. Foreign earned income received
in 2023 for services you performed in 2022 can be excluded
from your 2023 gross income if, and to the extent, the income
would have been excludable if you had received it in 2022.
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 2022 on Form 2555 to the left of
line 45. Next to the amount, enter “Exclusion of Income Earned
in 2022.” Include it in the total reported on line 45.
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 weren't within a reasonable commuting
distance of each other, and
• Each spouse's household wasn't 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.
Note. If you claimed any deduction, credit, or exclusion on your
2022 return that is definitely related to the 2022 foreign earned
income you are excluding under this rule, you may have to
amend your 2022 income tax return to adjust the amount you
claimed. To do this, file Form 1040-X.
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,
can't 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 through 22. You can enter “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.
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
these 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 the
location in which you incur housing expenses. In 2023, for most
locations, this limit is $36,000 (30% of $120,000) if your
qualifying period includes all of 2023 (or $98.63 per day if the
number of days in your qualifying period that fall within your 2023
tax year is less than 365). Eligible housing amounts for exclusion
and deduction are updated yearly and available at IRS.gov/irb/
2023-13_IRB#NOT-2023-26.
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
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Instructions for Form 2555 (2023)
Keep for Your Records
Limit on Housing Expenses Worksheet—Line 29b
Note. If the location in which you incurred housing expenses isn't listed in the table at the end of these instructions, and the number of days
in your qualifying period that fall within the 2023 tax year is 365, DO NOT complete this worksheet. Instead, enter $36,000 on line 29b.
1. Enter the number of days in your qualifying period that fall within the 2023 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 at
the end of these 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. Also, see Election to apply
higher limit on housing expenses, later.
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
these instructions for the location in which you incurred housing expenses. If the location isn't listed in
the table, enter $98.63. Also, see Election to apply higher limit on housing expenses, later . . . . . . . . . .
3.
4. Multiply line 1 by line 3. This is your limit on housing expenses. Enter the result here and
on line 29b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.
Housing expense limits are based on geographic differences
in foreign housing costs relative to housing costs in the United
States. They are updated on a yearly basis and are available at
IRS.gov/irb/2023-13_IRB#NOT-2023-26. 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 2023
tax year is less than 365, use the Limit on Housing Expenses
Worksheet—Line 29b 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 $36,000 on line 29b.
Line 31. Enter the number of days in your qualifying period that
fall within your 2023 tax year. Your qualifying period is the period
during which you meet the tax home test and either the bona fide
residence or physical presence test.
Example. You establish a tax home and bona fide residence
in a foreign country on August 14, 2023. You maintain the tax
home and residence until January 31, 2025. You are a calendar
year taxpayer. The number of days in your qualifying period that
fall within your 2023 tax year is 140 (August 14 through
December 31, 2023).
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.
Example. For 2023, because your location is not listed in the
table at the end of the instructions, your limit on housing
expenses is $98.63 per day. If you file a calendar year return and
your qualifying period is January 1, 2023, to October 3, 2023
(276 days), you would enter $27,222 on line 29b ($98.63
multiplied by 276 days).
Election to apply higher limit on housing expenses. For
2022, you could elect to apply the 2023 limits on housing
expenses as discussed in section 4 of Notice 2023-26, available
at IRS.gov/irb/2023-13_IRB#NOT-2023-26.
The IRS and the Treasury Department anticipate that you will
also be allowed to make an election to apply the 2024 limits to
figure your 2023 limit on housing expenses. The authorization to
make the election will be provided in a future annual notice
published in the Internal Revenue Bulletin.
More than one foreign location. If you moved during the
2023 tax year and incurred housing expenses in more than one
foreign location as a result, complete the Limit on Housing
Expenses Worksheet—Line 29b 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.
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 the following.
• 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 isn't excluded on line 25).
• Rent paid by your employer directly to your landlord.
• Amounts paid by your employer to reimburse you for housing
expenses, for 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
If you moved during the 2023 tax year and are
completing more than one Limit on Housing Expenses
CAUTION Worksheet—Line 29b, 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 2023 tax year
(that is, the number of days entered on Form 2555, line 31).
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.
!
Instructions for Form 2555 (2023)
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Keep for Your Records
Housing Deduction Carryover Worksheet—Line 49
1. Enter the amount from your 2022 Form 2555, line 46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.
2. Enter the amount from your 2022 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 2023 Form 2555. You do
not have any housing deduction carryover from 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.
4. Enter the amount from your 2023 Form 2555, line 47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.
5. Enter the amount from your 2023 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 2023 Form 2555. If line 3 is more than
line 6, you cannot carry the difference over to any future tax year . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.
on how to report your itemized deductions that are allocable to
the excluded income.
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.
Line 45. Enter the amount from line 45 on Schedule 1 (Form
1040), line 8d. Reduce the other items of additional income by
the negative amount on line 8d and enter the total on Schedule 1
(Form 1040), line 9.
Enter the amount from line 10 of Schedule 1 (Form 1040) on
line 8 of Form 1040 or 1040-SR. If line 10 of Schedule 1 (Form
1040) is a negative number, enter it on line 8 of Form 1040 or
1040-SR in parentheses. Reduce the total of lines 1 through 7 of
Form 1040 or 1040-SR by this amount before reporting total
income on line 9 of Form 1040 or 1040-SR.
Part VIII
If you claim either of the exclusions, you can't claim any
deduction, 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.
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 44. Report in full on Schedule 1 (Form 1040) and related
forms and schedules all deductions allowed in figuring your
adjusted gross income (Form 1040, line 11). Enter on line 44 the
total amount of those deductions (such as the deductible part of
self-employment tax, and the expenses claimed on Schedule C
(Form 1040)) that aren't 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
Line 49. Use the Housing Deduction Carryover
Worksheet—Line 49 to figure your carryover from 2022.
1-year carryover. If the amount on line 46 is more than the
amount on line 47, you can carry the difference over to your
2024 tax year. If you cannot deduct the excess in 2024 because
of the 2024 limit, you cannot carry it over to any future tax year.
-6-
Instructions for Form 2555 (2023)
2023 LIMITS ON HOUSING EXPENSES
Limit on Housing
Expenses (daily)
Limit on Housing
Expenses (full year)
.
City or Other Location
.
Country
Angola
Luanda
230.14
84,000
Argentina
Buenos Aires
154.79
56,500
Australia
Sydney
182.19
66,500
Bahamas, The
Nassau
136.16
49,700
Bahrain
Bahrain
132.33
48,300
Barbados
Barbados and Bridgetown
103.29
37,700
Belgium
Brussels
106.03
38,700
Bermuda
Bermuda
246.58
90,000
Brazil
Sao Paulo
155.07
56,600
Canada
Calgary
105.75
38,600
Montreal
144.11
52,600
Ottawa
126.30
46,100
Toronto
164.11
59,900
Vancouver
155.62
56,800
Victoria
113.15
41,300
Cayman Islands
Grand Cayman
131.51
48,000
China
Beijing
190.68
69,600
Hong Kong
313.15
114,300
Shanghai
156.17
57,001
Bogota
160.82
58,700
All cities other than Bogota
135.34
49,400
Costa Rica
San Jose
103.56
37,800
Democratic Republic of the Congo
Kinshasa
115.07
42,000
Denmark
Copenhagen
119.74
43,704
Dominican Republic
Santo Domingo
124.66
45,500
Ecuador
Quito
104.66
38,200
Estonia
Tallinn
127.67
46,600
France
Garches, Paris, Sevres, Suresnes, and Versailles
181.92
66,400
Lyon
100.55
36,700
Berlin
109.04
39,800
Boeblingen, Ludwigsburg, Nellingen, and Stuttgart
108.49
39,600
Bonn
115.07
42,000
Cologne
153.97
56,200
Gelnhausen and Hanau
112.33
41,000
Ingolstadt
127.40
46,500
Kaiserslautern, Landkreis, Pirmasens, Sembach, and
Zweibrueken
109.32
39,900
Mainz and Wiesbaden
121.92
44,500
Munich
127.40
46,500
Wahn
115.07
42,000
Guatemala
Guatemala City
115.07
42,000
Guinea
Conakry
140.55
51,300
Holy See, The
Holy See, The
121.10
44,200
India
Mumbai
186.08
67,920
Colombia
Germany
Instructions for Form 2555 (2023)
-7-
2023 LIMITS ON HOUSING EXPENSES
Country
City or Other Location
Limit on Housing
Expenses (daily)
Limit on Housing
Expenses (full year)
India (cont.)
New Delhi
153.76
56,124
Indonesia
Jakarta
103.50
37,776
Ireland
Dublin
105.21
38,400
Israel
Beer Sheva
158.90
58,000
Jerusalem
134.25
49,000
Tel Aviv
139.18
50,800
West Bank
134.25
49,000
Genoa
114.52
41,800
La Spezia
110.68
40,400
Milan
180.82
66,000
Naples
124.11
45,300
Rome
121.10
44,200
Vicenza
101.10
36,900
Jamaica
Kingston
112.88
41,200
Japan
Gifu, Komaki, and Nagoya
203.56
74,300
Okinawa Prefecture
129.32
47,200
Osaka-Kobe
248.39
90,664
Tokyo
210.96
77,000
Yokohama
112.33
41,000
Italy
Yokosuka
121.37
44,300
Kazakhstan
Almaty
131.51
48,000
Korea
Camp Colbern
148.49
54,200
Camp Market, K-16, Kimpo Airfield, Seoul, and Suwon
133.15
48,600
Camp Mercer
148.49
54,200
Kuwait
Kuwait City
176.44
64,400
Luxembourg
All cities other than Kuwait City
Luxembourg
158.08
99.18
57,700
36,200
Malaysia
Kuala Lumpur
126.58
46,200
Malta
Malta
150.96
55,100
Mexico
Merida
103.84
37,900
Mexico City
131.23
47,900
All cities other than Ciudad Juarez, Cuernavaca,
Guadalajara, Hermosillo, Matamoros, Mazatlan,
Merida, Metapa, Mexico City, Monterrey, Nogales,
Nuevo Laredo, Tijuana, and Veracruz
107.95
39,400
Mozambique
Maputo
108.22
39,500
Netherlands
Amsterdam and Schiphol
144.93
52,900
Aruba
107.67
39,300
Hague, The
144.38
52,700
Netherlands Antilles
Curacao
125.48
45,800
Oman
Muscat
113.15
41,300
Panama
Panama City
108.22
39,500
Peru
Lima
107.12
39,100
Poland
Warsaw
137.53
50,200
Portugal
Alverca and Lisbon
110.68
40,400
-8-
Instructions for Form 2555 (2023)
2023 LIMITS ON HOUSING EXPENSES
Country
City or Other Location
Limit on Housing
Expenses (daily)
Limit on Housing
Expenses (full year)
45,888
Qatar
Doha
125.72
Romania
Bucharest
112.88
41,200
Russia
Moscow
295.89
108,000
Saint Petersburg
164.38
60,000
Saudi Arabia
Riyadh
109.59
40,000
Singapore
Singapore
227.12
82,900
Slovenia
Ljubljana
127.12
46,400
South Africa
Pretoria
107.67
39,300
Spain
Barcelona
111.23
40,600
Madrid
147.67
53,900
Bern
189.04
69,000
Geneva
269.32
98,300
Taiwan
Zurich
Taipei
107.45
126.54
39,219
46,188
Tanzania
Dar Es Salaam
120.55
44,000
Thailand
Bangkok
161.64
59,000
Trinidad and Tobago
Port of Spain
149.32
54,500
Ukraine
Kiev
197.26
72,000
United Arab Emirates
Abu Dhabi
136.13
49,687
Dubai
156.64
57,174
Basingstoke
112.60
41,099
Bath
112.33
41,000
Bracknell, High Wycombe, and Reading
170.14
62,100
Caversham
202.19
73,800
Cheltenham
124.93
45,600
Farnborough
149.86
54,700
Felixstowe
94.25
34,400
Gibraltar
122.24
44,616
Lakenheath and Mildenhall
116.71
42,600
London
176.99
64,600
Loudwater
143.56
52,400
Southampton
121.10
44,200
Surrey
132.61
48,402
Venezuela
Caracas
156.16
57,000
Vietnam
Hanoi
128.22
46,800
Ho Chi Minh City
115.07
42,000
Switzerland
United Kingdom
Instructions for Form 2555 (2023)
-9-
| File Type | application/pdf |
| File Title | 2023 Instructions for Form 2555 |
| Subject | Instructions for Form 2555, Foreign Earned Income |
| Author | W:CAR:MP:FP |
| File Modified | 2023-11-01 |
| File Created | 2023-10-16 |