# Need help with: 1040, 2555



## miky348 (Sep 23, 2010)

*USA return: Need help with: 1040, 2555*

*2013:*

Foreign earned wages: $120,000

Housing allowance (rent) by Foreign employer: $48,000 (I get $4000/month for rent from my employer. Some months the employer pays me and I pay the rent, or employer pays the landlord directly)

I have no other income.

*Questions:*

a. What amount do I put in Line # 7 of 1040?

b. What amount do I put in Line # 19 of 2555 (Part IV)

c. What amount do I put in Line # 22E of 2555 (Part IV)

d. If Line # 36 of 2555 is $40,000, then what will be amount on Line # 42, 43 of 2555?

Thanks
miky


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## Bevdeforges (Nov 16, 2007)

Wow, this reminds me of the quizzes we used to get in my tax classes in business school (a long time ago in a galaxy far, far away...).

Haven't researched this in depth, but my take would be that:

a. Line 7 (1040) income is $168,000 
b. Line 19 (2555) is $120,000
c. Line 22e (2555) is $48,000

As far as d is concerned, I'd just follow the instructions on the 2555 form as literally as you can (i.e. subtract line x from line y and enter the larger/smaller on line z). The form instructions seem to make no sense, but followed literally generally produce the "right" answer.

Or, let's hope someone with some experience of taking both the FEIE and the housing allowance wanders by.
Cheers,
Bev


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## BBCWatcher (Dec 28, 2012)

I think Form 2555 will differentiate between direct employer payments of housing expenses and your payments (from an employer-provided "housing allowance" -- and keep in mind that the label anybody attaches to a particular portion of your income generally has no significance to the IRS). So just be careful about that. Also, please read the description of what are allowable housing expenses and what are not.

You may also need Form 1116. You're close, anyway.


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