U.S. Individual Income Tax Return Forms

2025

Instructions for Form 2555
Foreign Earned Income
Section references are to the Internal Revenue Code
unless otherwise noted.

Future Developments

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 2025, the maximum exclusion
amount has increased to $130,000.
Windfall Elimination Provision (WEP). WEP was
repealed by P.L. 118-273, Social Security Fairness Act of
2023, which was effective for social security payments
after December 2023. For more information, go to
SSA.gov/benefits/retirement/social-security-fairnessact.html.

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
Caution: Don't include on Form 1040 or 1040-SR,
line 25a or 25b (federal income tax withheld from Form(s)
W-2 or 1099, 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.

Sep 17, 2025

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.

Who Qualifies

You may qualify for the foreign earned income exclusion
and the housing exclusion or deduction if both of the
following apply.
• You meet the tax home test (discussed later).
• You meet either the bona fide residence test or the
physical presence test (discussed later).
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.
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.
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

Instructions for Form 2555 (2025) Catalog Number 11901A
Department of the Treasury Internal Revenue Service www.irs.gov

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/Combat-Zones.

Travel to Cuba

Generally, if you were in Cuba in violation of U.S. travel
restrictions, the following rules 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 income.
• Any housing expenses in Cuba (or housing expenses
for your 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.

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.
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.

Additional Information

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.

2

When To File

A 2025 calendar year Form 1040 or 1040-SR is generally
due April 15, 2026.
However, you are automatically granted a 2-month
extension of time to file (to June 15, 2026, for a 2025
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 using 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.
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:
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 file. 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.
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.

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/
International-Where-To-File-Form-1040-Addresses-forTaxpayers-and-Tax-Professionals.

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
Instructions for Form 2555 (2025)

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.
Note: You do not need to revoke a prior choice just
because you have no foreign earned income or foreign
housing costs for the year.
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.
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.
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

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.

Specific Instructions
Part I—General Information
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.
Line 9. Enter your tax home(s) and date(s) established.
See Tax home test under Who Qualifies, earlier.
Caution: You must complete either Part II or Part III of
Form 2555, but not both parts.

Part II—Taxpayers Qualifying Under
Bona Fide Residence Test
Bona Fide Residence Test

To meet this test, you must be one of the following.
• A U.S. citizen who is a bona fide resident of a foreign
country, or countries, for an uninterrupted period that

Instructions for Form 2555 (2025)

includes an entire tax year (January 1–December 31, if
you file a calendar year return).
• A U.S. resident alien who is a citizen or national of a
country 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 Table 3 at IRS.gov/
TreatyTables for a list of countries with which the United
States has an income tax treaty in effect.
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.
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.
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.”
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.

Part III—Taxpayers Qualifying Under
Physical Presence Test
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.
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.
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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.
Line 16. The 12-month period on which the physical
presence test is based must include 365 days (366 days
during a leap year), part of which must be in 2025. The
dates may begin or end in a calendar year other than
2025.
Tip: You must enter dates in both spaces provided on
line 16. Don't enter “Continues” in the space for the ending
date.

Part IV—All Taxpayers
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.)
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
2024 in 2025, that income may be treated as earned in
2025. If you cannot treat that salary payment as income
earned in 2025, the rules explained under Income earned
in prior year, later, apply.
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.
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.

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).
• 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 2024 for services you performed in 2025 can
be excluded from your 2024 gross income if, and to the
4

extent, the income would have been excludable if you had
received it in 2025. To claim the additional exclusion, you
must amend your 2024 tax return. To do this, file Form
1040-X.
Income earned in prior year. Foreign earned income
received in 2025 for services you performed in 2024 can
be excluded from your 2025 gross income if, and to the
extent, the income would have been excludable if you had
received it in 2024.
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
2024 on Form 2555 to the left of line 45. Next to the
amount, enter “Exclusion of Income Earned in 2024.”
Include it in the total reported on line 45.
Note: If you claimed any deduction, credit, or exclusion
on your 2024 return that is definitely related to the 2024
foreign earned income you are excluding under this rule,
you may have to amend your 2024 income tax return to
adjust the amount you claimed. To do this, file Form
1040-X.
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.
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.
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.

Part VI—Taxpayers Claiming the
Housing Exclusion and/or Deduction
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 are considered
Instructions for Form 2555 (2025)

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.
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
• 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 may figure your housing amounts jointly or separately.
However, if you and your spouse live in the same foreign
household and you choose to file separate returns, you
must figure your housing amounts separately.
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 their base
housing amount.
In figuring your housing amount separately, each
spouse must figure the housing amounts separately using
such spouse's respective base housing amount. Spouses
may allocate housing expenses to one spouse or between
the spouses so long as there's no duplication of housing
expenses being excluded or deducted.
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:
• 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.
Instructions for Form 2555 (2025)

Otherwise, only one spouse can claim their housing
exclusion or deduction. Regardless of whether you and
your spouse file a joint or separate return(s), each spouse
must figure the housing amounts for each foreign
household separately.
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 Notice 2025-16, available at IRS.gov/irb/
2025-13_IRB#NOT-2025-16; 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 2025, for most locations, this limit is $39,000
(30% of $130,000) if your qualifying period includes all of
2025 (or $106.85 per day if the number of days in your
qualifying period that fall within your 2025 tax year is less
than 365). Eligible housing amounts for exclusion and
deduction are updated yearly. See Notice 2025-16 for
more information.
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. See Notice 2025-16 for a list of specific locations. If
the location in which you incurred housing expenses is
listed in Notice 2025-16, or the number of days in your
qualifying period that fall within the 2025 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 Notice 2025-16, and the number
of days in your qualifying period is 365, enter $39,000 on
line 29b.
Example. For 2025, because your location is not listed
in the table in Notice 2025-16, your limit on housing
expenses is $106.85 per day. If you file a calendar year
return and your qualifying period is January 1, 2025, to
October 3, 2025 (276 days), you would enter $29,491 on
line 29b ($106.85 multiplied by 276 days).
Election to apply higher limit on housing expenses.
For 2024, you could elect to apply the 2025 limits on
housing expenses as discussed in section 4 of Notice
2025-16.
The IRS and the Treasury Department anticipate that
you will also be allowed to make an election to apply the
2026 limits to figure your 2025 limit on housing expenses.
The authorization to make the election will be provided in
a future annual notice published in the Internal Revenue
Bulletin.
More than one foreign location. If you moved during
the 2025 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.

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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 in Notice 2025-16, and the number of days in your
qualifying period that fall within the 2025 tax year is 365, DO NOT complete this worksheet. Instead, enter $39,000 on line 29b.
1. Enter the number of days in your qualifying period that fall within the 2025 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 Limitation on Housing Expenses (full year) from the table
in Notice 2025-16 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 Limitation on Housing Expenses (daily/365 days) from the table in
Notice 2025-16 for the location in which you incurred housing expenses. If the location isn't listed in the
table, enter $106.85. Also, see Election to apply higher limit on housing expenses, later . . . . . . . . . . . .

3.

4. Multiply line 1 by line 3. This is your limit on housing expenses. Enter the result here and
on line 29b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.

If you moved during the 2025 tax year and are
completing more than one Limit on Housing
CAUTION Expenses 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 2025 tax year (that is, the number of
days entered on Form 2555, line 31).

• 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.

Line 31. Enter the number of days in your qualifying
period that fall within your 2025 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, 2025. You
maintain the tax home and residence until January 31,
2027. You are a calendar year taxpayer. The number of
days in your qualifying period that fall within your 2025 tax
year is 140 (August 14 through December 31, 2025).

Part VII—Taxpayers Claiming the
Foreign Earned Income Exclusion

!

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.

6

Self-employed individuals. If all of your foreign earned
income (Part IV) is self-employment income, skip lines 34
and 35 and enter zero on line 36. If you qualify for the
housing deduction, be sure to complete Part IX.

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.
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.

Part VIII—Taxpayers Claiming the
Housing Exclusion, Foreign Earned
Income Exclusion, or Both

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.
The exclusion under section 119 and the housing
deduction are not considered definitely related to the
excluded income.
Instructions for Form 2555 (2025)

Housing Deduction Carryover Worksheet—Line 49

Keep for Your Records

1. Enter the amount from your 2024 Form 2555, line 46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.

2. Enter the amount from your 2024 Form 2555, line 48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.

3. Subtract line 2 from line 1. If the result is zero, stop; enter -0- on line 49 of your 2025 Form 2555. You do
not have any housing deduction carryover from 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.

4. Enter the amount from your 2025 Form 2555, line 47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.

5. Enter the amount from your 2025 Form 2555, line 48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5.

6. Subtract line 5 from line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.

7. Enter the smaller of line 3 or line 6 here and on line 49 of your 2025 Form 2555. If line 3 is more than
line 6, you cannot carry the difference over to any future tax year . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7.

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 11a). 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 on how to report your
itemized deductions that are allocable to the excluded
income.
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

Instructions for Form 2555 (2025)

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 IX—Taxpayers Claiming the
Housing Deduction

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 49. Use the Housing Deduction Carryover
Worksheet—Line 49 to figure your carryover from 2024.
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 2026 tax year. If you cannot deduct the excess in
2026 because of the 2026 limit, you cannot carry it over to
any future tax year.

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