Form 2555-EZ is a form that can be used to claim the Foreign Earned Income Exclusion. It is a simpler version of the Form 2555 that has fewer lines. The maximum exclusion has increased to $103,900 for 2018.
You can use the Form 2555-EZ to claim the Foreign Earned Income Exclusion if you satisfy the following conditions:
You may not be able to claim the exclusion on the first year you plan to, as you may have not met with either of the two qualifying tests by the due date of your return (including the automatic 2-month extension). In this situation, you can either:
Note: To apply for the special extension you need to complete and file Form 2350 with the department of treasury, IRS Center, Austin, TX 73301 before the due date of the return.
The preparation to file Form 2555-EZ begins at the start of the financial year itself. There are some pre-requisites to file the form:
Below are the detailed steps to fill the Form 2555-EZ. The Form is divided into four parts. You need to fill each part one-by-one as instructed below: