2000 Form 2555-EZ. Foreign Earned Income Exclusion - irs-2025

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The maximum foreign earned income exclusion amount is adjusted annually for inflation. For tax year 2023, the maximum foreign earned income exclusion is the lesser of the foreign income earned or $120,000 per qualifying person. For tax year 2024, the maximum exclusion is $126,500 per person.
Form 2555 (Foreign Earned Income Exclusion) calculates the amount of foreign earned income and/or foreign housing you can exclude from taxation. Form 2555-EZ is a simplified version of this form. Heres how to add or remove a Form 2555 or 2555-EZ from your return: Sign in to TurboTax and open or continue your return.
The source of your earned income is the place where you perform the services for which you receive the income. Foreign earned income is income you receive for performing personal services in a foreign country. Where or how you are paid has no effect on the source of the income.
What is the Foreign Earned Income Exclusion (Form 2555)? If you are living and working abroad, you may be entitled to exclude up to $120,000 of your foreign income from your 2023 income tax return. You may also qualify to exclude certain foreign housing amounts.
A U.S. citizen or a U.S. resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.
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To qualify, the tax must be imposed on you by a foreign country or U.S. possession and you must have paid the tax. Taxes on income, wages, dividends, interest, and royalties generally qualify for the foreign tax credit.
Complete Form 1040 Line Items Once Form 2555 is completed, the amount of excluded foreign-earned income will transfer to Line 7 of your Form 1040. This reduces your total taxable income by the amount of the exclusion. If you claimed the Foreign Housing Exclusion as well, it will also be included here.

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