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Form 2555 Instructions

Instructions for Form 2555, Foreign Earned Income

Rev. 2023

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Department of the Treasury  
Internal Revenue Service  
2023  
Instructions for Form 2555  
Foreign Earned Income  
Section references are to the Internal Revenue Code unless  
otherwise noted.  
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.  
Future Developments  
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.  
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.  
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/  
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.  
Travel to Cuba  
Generally, if you were in Cuba in violation of U.S. travel  
restrictions, the following rules apply.  
Who Qualifies  
You qualify to exclude your foreign earned income from gross  
income if both of the following 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  
You meet the tax home test (discussed later).  
You meet either the bona fide residence test or the physical  
income.  
Cat. No. 11901A  
presence test (discussed later).  
Oct 16, 2023  
     
Any housing expenses in Cuba (or housing expenses for your  
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.  
spouse or dependents in another country while you were in  
Cuba) aren't 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.  
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/  
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.  
Note. It is not necessary to affirmatively revoke your choice if  
Additional Information  
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.  
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.  
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.  
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:  
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.  
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 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.  
-2-  
Instructions for Form 2555 (2023)  
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.  
Specific Instructions  
Part I  
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.  
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.  
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).  
You must enter dates in both spaces provided on line 16.  
A U.S. resident alien who is a citizen or national of a country  
Don't enter “Continues” in the space for the ending date.  
TIP  
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  
Treaty-Tables for a list of countries with which the United States  
has an income tax treaty in effect.  
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.  
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  
-3-  
Instructions for Form 2555 (2023)  
   
(WEP). For more information about the WEP, go to SSA.gov/  
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.  
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.  
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  
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.  
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.  
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.  
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.  
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.  
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:  
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.  
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.  
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.  
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  
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/  
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  
-4-  
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.  
4. Multiply line 1 by line 3. This is your limit on housing expenses. Enter the result here and  
on line 29b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
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.  
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  
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.  
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.  
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.  
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.  
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  
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.  
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).  
-5-  
Instructions for Form 2555 (2023)  
 
Keep for Your Records  
Housing Deduction Carryover Worksheet—Line 49  
1. Enter the amount from your 2022 Form 2555, line 46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
2. Enter the amount from your 2022 Form 2555, line 48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
1.  
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.  
5.  
6.  
4. Enter the amount from your 2023 Form 2555, line 47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
5. Enter the amount from your 2023 Form 2555, line 48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
6. Subtract line 5 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
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.  
Part IX  
The exclusion under section 119 and the housing deduction  
are not considered definitely related to the excluded income.  
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  
City or Other Location  
Limit on Housing  
Expenses (daily)  
Limit on Housing  
Expenses (full year)  
Country  
Angola  
Luanda  
230.14  
154.79  
182.19  
136.16  
132.33  
103.29  
106.03  
246.58  
155.07  
105.75  
144.11  
126.30  
164.11  
155.62  
113.15  
131.51  
190.68  
313.15  
156.17  
160.82  
135.34  
103.56  
115.07  
119.74  
124.66  
104.66  
127.67  
181.92  
100.55  
109.04  
108.49  
115.07  
153.97  
112.33  
127.40  
84,000  
56,500  
66,500  
49,700  
48,300  
37,700  
38,700  
90,000  
56,600  
38,600  
52,600  
46,100  
59,900  
56,800  
41,300  
48,000  
69,600  
114,300  
57,001  
58,700  
49,400  
37,800  
42,000  
43,704  
45,500  
38,200  
46,600  
66,400  
36,700  
39,800  
39,600  
42,000  
56,200  
41,000  
46,500  
Argentina  
Australia  
Buenos Aires  
Sydney  
Bahamas, The  
Bahrain  
Nassau  
Bahrain  
Barbados  
Belgium  
Bermuda  
Brazil  
Barbados and Bridgetown  
Brussels  
Bermuda  
Sao Paulo  
Calgary  
Canada  
Montreal  
Ottawa  
Toronto  
Vancouver  
Victoria  
Cayman Islands  
China  
Grand Cayman  
Beijing  
Hong Kong  
Shanghai  
Colombia  
Bogota  
All cities other than Bogota  
San Jose  
Costa Rica  
Democratic Republic of the Congo Kinshasa  
Denmark  
Copenhagen  
Dominican Republic  
Ecuador  
Santo Domingo  
Quito  
Estonia  
Tallinn  
France  
Garches, Paris, Sevres, Suresnes, and Versailles  
Lyon  
Germany  
Berlin  
Boeblingen, Ludwigsburg, Nellingen, and Stuttgart  
Bonn  
Cologne  
Gelnhausen and Hanau  
Ingolstadt  
Kaiserslautern, Landkreis, Pirmasens, Sembach, and  
Zweibrueken  
109.32  
121.92  
127.40  
115.07  
115.07  
140.55  
121.10  
186.08  
39,900  
44,500  
46,500  
42,000  
42,000  
51,300  
44,200  
67,920  
Mainz and Wiesbaden  
Munich  
Wahn  
Guatemala  
Guinea  
Guatemala City  
Conakry  
Holy See, The  
India  
Holy See, The  
Mumbai  
-7-  
Instructions for Form 2555 (2023)  
2023 LIMITS ON HOUSING EXPENSES  
City or Other Location  
Limit on Housing  
Expenses (daily)  
Limit on Housing  
Expenses (full year)  
Country  
India (cont.)  
Indonesia  
Ireland  
New Delhi  
Jakarta  
153.76  
103.50  
105.21  
158.90  
134.25  
139.18  
134.25  
114.52  
110.68  
180.82  
124.11  
121.10  
101.10  
112.88  
203.56  
129.32  
248.39  
210.96  
112.33  
121.37  
131.51  
148.49  
133.15  
148.49  
176.44  
56,124  
37,776  
38,400  
58,000  
49,000  
50,800  
49,000  
41,800  
40,400  
66,000  
45,300  
44,200  
36,900  
41,200  
74,300  
47,200  
90,664  
77,000  
41,000  
44,300  
48,000  
54,200  
48,600  
54,200  
64,400  
Dublin  
Israel  
Beer Sheva  
Jerusalem  
Tel Aviv  
West Bank  
Genoa  
Italy  
La Spezia  
Milan  
Naples  
Rome  
Vicenza  
Kingston  
Jamaica  
Japan  
Gifu, Komaki, and Nagoya  
Okinawa Prefecture  
Osaka-Kobe  
Tokyo  
Yokohama  
Yokosuka  
Kazakhstan  
Korea  
Almaty  
Camp Colbern  
Camp Market, K-16, Kimpo Airfield, Seoul, and Suwon  
Camp Mercer  
Kuwait City  
Kuwait  
All cities other than Kuwait City  
Luxembourg  
158.08  
99.18  
57,700  
36,200  
Luxembourg  
Malaysia  
Malta  
Kuala Lumpur  
Malta  
126.58  
150.96  
103.84  
131.23  
107.95  
46,200  
55,100  
37,900  
47,900  
39,400  
Mexico  
Merida  
Mexico City  
All cities other than Ciudad Juarez, Cuernavaca,  
Guadalajara, Hermosillo, Matamoros, Mazatlan,  
Merida, Metapa, Mexico City, Monterrey, Nogales,  
Nuevo Laredo, Tijuana, and Veracruz  
Mozambique  
Netherlands  
Maputo  
108.22  
144.93  
107.67  
144.38  
125.48  
113.15  
108.22  
107.12  
137.53  
110.68  
39,500  
52,900  
39,300  
52,700  
45,800  
41,300  
39,500  
39,100  
50,200  
40,400  
Amsterdam and Schiphol  
Aruba  
Hague, The  
Curacao  
Netherlands Antilles  
Oman  
Muscat  
Panama  
Peru  
Panama City  
Lima  
Poland  
Warsaw  
Portugal  
Alverca and Lisbon  
-8-  
Instructions for Form 2555 (2023)  
2023 LIMITS ON HOUSING EXPENSES  
City or Other Location  
Limit on Housing  
Expenses (daily)  
Limit on Housing  
Expenses (full year)  
Country  
Qatar  
Doha  
125.72  
112.88  
295.89  
164.38  
109.59  
227.12  
127.12  
107.67  
111.23  
147.67  
189.04  
269.32  
45,888  
41,200  
108,000  
60,000  
40,000  
82,900  
46,400  
39,300  
40,600  
53,900  
69,000  
98,300  
Romania  
Russia  
Bucharest  
Moscow  
Saint Petersburg  
Riyadh  
Saudi Arabia  
Singapore  
Slovenia  
Singapore  
Ljubljana  
Pretoria  
South Africa  
Spain  
Barcelona  
Madrid  
Switzerland  
Bern  
Geneva  
Zurich  
Taipei  
107.45  
126.54  
39,219  
46,188  
Taiwan  
Tanzania  
Thailand  
Dar Es Salaam  
Bangkok  
Port of Spain  
Kiev  
120.55  
161.64  
149.32  
197.26  
136.13  
156.64  
112.60  
112.33  
170.14  
202.19  
124.93  
149.86  
94.25  
44,000  
59,000  
54,500  
72,000  
49,687  
57,174  
41,099  
41,000  
62,100  
73,800  
45,600  
54,700  
34,400  
44,616  
42,600  
64,600  
52,400  
44,200  
48,402  
57,000  
46,800  
42,000  
Trinidad and Tobago  
Ukraine  
United Arab Emirates  
Abu Dhabi  
Dubai  
United Kingdom  
Basingstoke  
Bath  
Bracknell, High Wycombe, and Reading  
Caversham  
Cheltenham  
Farnborough  
Felixstowe  
Gibraltar  
122.24  
116.71  
176.99  
143.56  
121.10  
132.61  
156.16  
128.22  
115.07  
Lakenheath and Mildenhall  
London  
Loudwater  
Southampton  
Surrey  
Venezuela  
Vietnam  
Caracas  
Hanoi  
Ho Chi Minh City  
-9-  
Instructions for Form 2555 (2023)