Have a Tax Question? Ask a Tax Expert
Although the foreign earned income exclusion has changed year to year, in 2008 the exclusion amount was $87,600. If you fall under the exclusion amount for each year, you would simply file Form 2555 along with Form 1040 to claim the exclusion and owe no taxes on that income. Be aware that certain incomes are not excluded, such as certain US pensions, social security payments, and military/civilian pay for the US government. You may also claim additional exclusion amounts for foreign housing if requirements are met. Please be aware that you MUST file Form 2555 in order to make the election in order to make the qualified income non-taxable.
Please let me know if you have further questions.
Appreciate the information -- please note i know about the Form 2555 however i have not filled since Yr 2001 till date any tax return. I'm trying to know how i can file for all the years i have missed so i can be update for all my taxes.
Thank you for the follow up. To file your taxes you would simply fill out Forms 1040, 2555 and any other applicable schedule or form for each respective year. You could then either mail them to your IRS service center for your region or you could also hand deliver them to your local field office. Please ensure you use the proper form for each year as indicated in the upper left hand corner. These forms may be downloaded from www.irs.gov. Please let me know if you have further questions.
So if i understand it right -- basically i download the form and have it completed for each year i have not filed the taxes. Secondly if i'm with the taxable allowance for overseas Americans do i still need to submit any other paperwork along with the tax form. We do not receive W2's like we receive back home. Therefore need to know what else do i need to attach with the 2555 form.
Plus do i need to file both 1040 plus 2555 or just 2555 alone. I understand there is 1040EZ as well as 2555EZ. Which form will i eventually file.
Can i file at the US Embassy here or i need to mail them to IRS office in US. Plus is there any chance of being audited if i file all of them in one go.
Looking forward to hear from you soon !
You would file both Forms 1040 and 2555, or the EZ versions if you qualify, for each tax year. I would recommend both that you file them all at once (certified mail to address below) and that you hire a tax professional to prepare them to ensure they are completed properly. I hate to give an answer that states you should see a tax professional, however a meeting with one would be prudent if you have never dealt with Form 2555. No W2 equivalent would be needed with the filing. Please let me know if you have further questions.
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