Section 34 and Section 35 - Form 2555

Sections 34 and 35 are Form 2555, Foreign Earned Income for the primary (Section 34) and secondary (Section 35) taxpayer. Additional correction procedures are found in IRM 3.22.3.101 (EC 024), IRM 3.22.3.143 (EC 148), IRM 3.22.3.144 (EC 150), IRM 3.22.3.145 (EC 152), IRM 3.22.3.146 (EC 154), IRM 3.22.3.166 (EC 216), IRM 3.22.3.168 (EC 218), IRM 3.22.3.174.2.1 (EC 229), IRM 3.22.3.175 (EC 230), and IRM 3.22.3.247 (EC 334).

A U.S. citizen or resident alien who has earned income from a foreign country or countries may have income that is deductible or excludable from U.S. income tax on Form 1040 if they have a tax home in a foreign country or countries and is:

A U.S. citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period (regardless of physical presence) which includes an entire taxable year and part or all of the tax year of the return or

A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty with an applicable nondiscrimination clause and who is a bona fide resident of a foreign country for an uninterrupted period that includes an entire taxable year and part or all of the tax year of the return or

A U.S. citizen or resident alien who has been physically present in a foreign country or countries for at least 330 days during any period of 12 consecutive months. Part of the 12-month period must fall in the tax period of the return.

If a taxpayer left certain countries within certain dates without meeting the time requirement on Form 2555, the requirement can be waived, see IRM 3.22.3.168.2.3.1.

One Form 2555 must be provided for each taxpayer claiming the exclusion.

If pages 1 or 2 are missing, SSPND with Action Code 215 to correspond for missing pages using Form 13900for Letter 4087C, and selecting paragraph O for Form 2555.

If the primary and secondary taxpayers have combined foreign earned income on one Form 2555 then SSPND 215 and correspond using Form 13900 and selecting paragraph P. If the taxpayers are a missionary team and both are included on one Form 2555 then don’t correspond. Divide the income equally between the two and adjust the available fields. GTSEC 34 (primary) or GTSEC 35 (secondary) and enter the spouse’s information and portion in available fields.

If multiple Form 2555 are attached for one taxpayer then GTSEC 34 or 35 and enter the combined information in all available fields.

All fields are positive.

The money amounts are entered in DOLLARS ONLY.

The first Form 2555 is Section 34 for the primary taxpayer and the second Form 2555 is Section 35 for the secondary taxpayer.