Form 2555-2025

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Form 2555 - Foreign Earned Income, used by taxpayers to claim the foreign-earned income exclusion, housing exclusion, and housing deduction. Form 1116 - Foreign Tax Credit, used by taxpayers to claim a credit against U.S. income tax liability for income taxes paid to a foreign jurisdiction.
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.
IRS Form 2555 Form 2555: When a U.S. person works overseas and is able to meet the requirements of the Foreign Earned Income Exclusion (FEIE), they may qualify to file a 2555 form and exclude foreign income from U.S. Tax. The exclusion amount adjusts each year for inflation but currently hovers around $110,000.
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.
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.

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Form 2555 shows how you qualify for the bona fide residence test or physical presence test, how much of your foreign earned income is excluded, and how to figure the amount of your allowable foreign housing exclusion or deduction.
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.

irs 2555 form 2021