This form is used to claim the Foreign Earned Income Exclusion, which can exclude a certain amount of foreign income from being taxed in the US
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Part I - General Information: About yourself and your foreign tax home, including the details of your physical presence in or bona fide residence in a foreign country
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Part II - Taxpayers Qualifying Under Bona Fide Residence Test: This part is where we determine whether you qualify for the foreign earned income exclusion under the bona fide residence test, which requires you to be a bona fide resident of a foreign country for an uninterrupted period that includes an entire tax year.
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Part III - Taxpayers Qualifying Under Physical Presence Test: This part is for determining qualification under the physical presence test, which requires you to be physically present in a foreign country or countries for at least 330 full days during a 12-month period.
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Part IV - All Taxpayers: This part lists all your foreign-earned income, including wages, salaries, bonuses, noncash income, allowances, and reimbursements.
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Part V - Foreign Housing Exclusion or Deduction: Calculate the amount of your housing exclusion or deduction if you qualify.
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Part VI - Claiming the Foreign Earned Income Exclusion: Calculates and claims the foreign earned income exclusion.
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Part VII - Taxpayers Claiming the Foreign Earned Income Exclusion: Calculates the total exclusions claimed and the portion of deductions that can be allocated to the excluded income.
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Taxpayers Claiming the Housing Deduction: Completed if you are eligible to claim the housing deduction.
Form 2555 involves tests for qualifying, income and housing details, and calculations for the exclusion. The calculated amounts are reported on your Form 1040.