Hello, my name is Benjamin Hard. I'm an American attorney and the managing director of Integrity Legal here in Bangkok, Thailand. This video is to provide some brief insight on what's called a Form 2555, which pertains to the exclusion of foreign earned income. Basically, this form is used to report your income earned outside of the United States. It is a common misconception that Americans abroad do not need to file a tax return, but in reality, Americans are subject to taxation on their worldwide income. Therefore, it is necessary to file your tax returns. However, there are certain exclusions and benefits granted to American citizens who primarily reside outside of the United States. One of these exclusions is the foreign earned income exclusion, which is the focus of Form 2555. According to the IRS website, if you qualify, you can use this form to figure out your foreign earned income exclusion and your housing exclusion or deduction. To be eligible for this exclusion, your foreign earned income must not exceed a certain amount, currently around $106,000 to $108,000. If your foreign earned income falls below this threshold, you may not be liable to pay any taxes specifically on that income. Using Form 2555 can provide a substantial benefit, allowing you to avoid filing or paying taxes on the income you earn outside of the United States, as long as you meet the other eligibility criteria.
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2555 2024 Form: What You Should Know
BelgiumBrugge31,40021.82BrazilCape Town24,1505.07ChileBuenos Aires26,10031.35Costa Michael Dorado26,10031.35CubaHavana24,35028.41CuracaoHavana26,30031.35DenmarkDenmark26,50021.82EcuadorIquique24,10041.42FranceChamonix26,30031.35GermanyBremen24,30096.45GreeceLisbon19,00043.55GuatemalaMendoza21,05051.28MexicoMexico City22,502041.42PeruGuadalajara19,502531.35SwitzerlandLausanne11,25041.42Turkey Istanbul16,75041.42United KingdomLondon34,80043.55 For more information, call the IRS at. IRS Form 2555 30 Oct 2024 — Foreign Earned Income — IRS For 2018, your foreign earned income consists of more than 103,900 of wages. Your annual housing amount is calculated by multiplying the amount of your annual rental income by your allowable housing costs for the year. For example: If you rent from January 1 through December 31 and earn 25,000, your rental income is 25,000 × 0.10 = 6,000. Your rental expenses for the year are 25,000. Your estimated housing expense for the year is 6,000 × 0.20 = 2,000. To figure your home expenses, multiply your home value by 1.1 x your rent and use this figure in the figure on the next page. Example: If the home's value is 150,000, then the home's estimated value is 150,000 × 1.1 = 2,100. Therefore, your annual housing payment for this year would be 2,100 minus the income you received. The IRS does not issue a deduction for property taxes. If you have real-estate tax liability, you might be able to deduct a portion of the tax on your income tax return. To find out what portion of the tax you can deduct, see Real-estate tax deduction on page 2 of Publication 501.
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Video instructions and help with filling out and completing Form 2555 2024
