2555 Law and Legal Definition

2555 is an Internal Revenue Service form filed by taxpayers who are entitled to foreign income. This form is filed by taxpayers to get tax exemption for income earned outside the territory of U.S. To qualify for the foreign earned income exemption, one must:

1. be working and residing outside the U.S.;

2. meet either the Bona Fide or Physical Presence tests.

The IRS excludes a person from annual foreign income only to an extent of $ 91,500. Also this form can be used to claim the housing exclusion or deductions.