Form 2555 2022 Printable, Fillable PDF – The IRS Form 2555 is one of the tax forms that you should get acquainted with if you’re an American working and living in a foreign country. You may use it to claim the Foreign Earned Income Exclusion, which, if you qualify, can save you a lot of time and money when it comes to doing your taxes in the future. Later on this page, we will cover the fundamentals of Form 2555, such as why it is required to be filed and how to go about filing it, in more detail.
Taxes as an expat may be complex, what with all the various abbreviations and form numbers to remember—why that’s why we’re here to help you through the process! Taxes are complicated, and completing the incorrect form may result in a slew of complications. Start working with H & R Block now, and we’ll make sure your taxes are completed correctly. No matter where you are on the globe, we have a tax solution for you—whether you want to submit your expat taxes on your own or with the assistance of an expert.
Form 2555, which is needed to claim the overseas earned income exclusion, may be found here.
In What Way Does Form 2555 Serve A Purpose?
The vast majority of nations levy some kind of tax on income produced inside their own borders. The United States operates in a similar manner. One distinction between the United States and other countries is that the United States taxes income based on citizenship and residence, which means that you must still pay taxes on money generated when traveling overseas.
Americans who make money while living abroad are protected from being doubly taxed (once by the United States and once by the nation in which they earned the income) by the creation of foreign tax credits, deductions, and exclusions that may be claimed by expats living in the United States. One of these methods is to provide select American expats the ability to claim the foreign earned income exclusion on their overseas earnings. Tax Form 2555 is used to calculate and claim the foreign earned income exclusion, as well as the housing exclusion or deduction, which are both available to you.
Whether you’re filing Form 2555 to claim the foreign income exclusion or Form 1116 to claim the foreign tax credit, we can guide you through it. No matter where you are on the globe, we have a tax solution for you—whether you want to file your expat taxes on your own or with the assistance of a professional adviser.
Who Is Required To Submit Form 2555?
In order to claim the overseas earned income exclusion, you must submit IRS Form 2555 to the Internal Revenue Service. If you meet the requirements of the bona fide residence test or the physical presence test and if you have a foreign tax home, you may claim an exclusion for income earned overseas.
Instructions For Completing Form 2555
However, since making a mistake with Form 2555 may be very costly (both financially and emotionally), we suggest that you hire a seasoned tax professional to complete all of the necessary paperwork on your behalf.