Korean Job Discussion Forums

[cedarseoul]

American taxpayers:

I read some time ago that form 2555 can only be used to exempt tax on foreign-earned income for two years. However, I've not seen anything to that effect on the IRS Web site or in Internet searches, so I'm wondering...is there a limit on the number of years one can exempt foreign-earned income?

[Jandar]

Yes it's very confusing.

Is it two years in a row?

Two years in a lifetime?

Or is it one form can be used for claiming two years of income?

It's not too clear.

You should always read IRS code in your favor.

Then claim that Tim Geithner help you with your returns.

[cedarseoul]

Well - as far as I can tell, there's nothing on the IRS instructions about a 2-year limit whatsoever.

http://www.irs.gov/pub/irs-pdf/i2555.pdf

So I'm going to assume - unless I hear otherwise - that I can continue to exempt my earnings each year, up to the maximum amount.

[postfundie]

I believe that you can use it for consecutive years.
Once you stop using it though you have to wait for five years to start...or at least I read that on the 2002 instruction form

[Jati]

Huh? I have used Form 2555 for 13 years straight. I don't think that there is a limit, but rather as long as you work and live overseas.

I will have to pull out the Form 2555 instructions book and have a look at the guidelines again.