US Expat Form 2555/2555-EZ Broken down

You must attach either a Form 2555 or Form 2555-EZ to your US tax return in order to claim Foreign Earned income Exclusion (FEIE). FEIE allows US taxpayers to exclude up to $101,300 on their tax return.

A Form 2555 is a three-page form that is comprised of nine sections, addressing different aspects of the FEIE. This form can be extremely complex and hard to navigate.  The form 2555-EZ is comparatively simple, however you must fall into the following criteria for to file the form-

·      Be a US citizen or resident alien

·      Earn less that $100,800 for 2015 or $101,300 for 2016 wages in a foreign country.

·      File a US return covering a calendar year

·      Don’t plan to claim Foreign Housing Exclusion or deduction

·      Don’t have business or moving expenses associated with your position of employment

How to prepare to file a Form 2555-EZ/2555?

Keeping detailed and accurate records throughout the tax year can be extremely beneficial when you come to fill in the form. You should know the following information:

·      Employer’s name and address

·      International travel calendar- including date you have worked in the US

·      Prior year From 2555-EZ/2555

·      Foreign income earnings statements


The Form

Part 1: Determining if you can claim Foreign Earned Income Exclusion (FEIE)

To claim FEIE you must qualify in either the Bona Fide Residence Test or Physical Presence Test.

Part 2: General Information

The knowledge needed to answer this section is often self-explanatory

Part 3: List days present in the US

Part 4: Calculate your Foreign Earned Income Exclusion

For expert advice a form 2555/2555-EZ contact us