1040-US: Entering exclusion of foreign income earned in the previous year

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Question

I have calculated an amount for exclusion of income earned in the previous year. How do I enter this information?

Answer

Enter the amount in the Exclusion of income earned in 2016 field in Screen 2555-2, in the Foreign Exclusion folder. Enter only amounts that represent foreign earned income received in the current year for services performed in the previous year to the extent that the income would have been excludable if received in the previous year. This amount is added to the Form 2555, line 45 (or Form 2555-EZ, line 18) amount and "Exclusion of Income Earned in 2016" prints on the form. Complete the Details on how the exclusion was figured field to indicate how the exclusion was calculated.

Refer to IRS Form 2555 instructions for Part IV for more information.

Related topic: Foreign tax credits and earned income FAQs (1040)

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