Guide to Global Payroll Management - 2020 - D-151

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Appendix D--Federal Forms and Instructions

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
reasonably could have 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/OrderForms.

When To File

A 2019 calendar year Form 1040 or
1040-SR is generally due April 15, 2020.
However, you are automatically
granted a 2-month extension of time to file
(to June 15, 2020, for a 2019 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.
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 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 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 Forms
1040 and 1040-SR. The filing addresses
are also available at IRS.gov/Filing/
International-Where-To-File-Form-1040Addresses-for-Taxpayers-and-TaxProfessionals.

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 an
exclusion, 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
-2-

next 5 tax years without the approval of
the IRS. See Pub. 54 for more information.
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 Forms 1040 and 1040-SR
and complete the Foreign Earned Income
Tax Worksheet to figure the amount of tax
to enter on Form 1040 or 1040-SR,
line 12. 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

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.

Instructions for Form 2555 (2019)

D-151
Guide to Global Payroll Management - 2020

Table of Contents for the Digital Edition of Guide to Global Payroll Management - 2020
