Form 2555 EZ - Line 18

Yikes, ok ... I've run into an issue on my 1040 Form because of the instructions on line 18 on the 2555-EZ. "Enter the smaller of line 16 or line 17 here ($6,249.14) and in parentheses on Form 1040, line 21. Next to the amount enter "2555-EZ." On form 1040, subtract this amount from your income to arrive at the total income on Form 1040, line 22 ..."

Ok, so I haven't earned any US based income so I haven't filled box 7. Now, would I subtract this number by itself to arrive at -0- on line 22?

First time filing taxes, ever! My mom has always done them for me when I lived back home. Panicking just a bit.

Thanks in advance for your advice!

You need to be putting your foreign wages on line 7. Remember you need to report your worldwide income on the 1040 and then reflect the relief you are taking, which brings your US tax liability down.

Hiya,

Yeah, I'm still confused. So I put that amount on line 21, where it says "other income. list type and amount", and on line 7 even if I don't have a W-2 form?

Apologies for my ignorance.

Thank you for your help thus far!

Regards,
Nichole

P.S. I don't know if this matters but I have been living in the UK since Sept. 2008.

Line 7 isn't just for W-2 wages.  It is for all wages - foreign and US.  So if your foreign wages are the $6,249 below, that goes on line 7.  You are reporting what you earned.

Then using the 2555, this goes as a negative (i.e. -6249).  You are reporting that you are taking a deduction for your foreign earned income.  You are then left with zero for line 22.

6249 compensation, line 7
-6249 deduction, line 21
0, line 22

Ah, what a relief! I can finally send these off without fear that I've completely bungled the whole process up.

Thanks for all your help Sara.