RobertB4444
Expert Alumni

Get your taxes done using TurboTax

Form 2555 is for foreign earned income and is used to exclude income earned in a foreign country from being taxed in the United States.  Income that you earned while you were still in the United States can not be excluded using this form.  So none of the lines on the 2555 apply to the 1099-NEC that you received for your freelance writing job.

 

In order to qualify for the Physical Prescence test you need to be physically present in a foreign country for an entire year.  If you moved abroad in August of 2023 you do not qualify for the Physical Prescence Test.  You will as of August of 2024.  

 

You can qualify under the Bona Fide Residence Test if you are a citizen or national of the country that you have moved to.  If not you do not qualify for the Foreign Earned Income Exclusion in 2023.

 

If you paid any taxes in the country that you have relocated to in 2023 you do qualify to take a foreign tax credit.  You can deduct the taxes that you paid in the country where you are living from any taxes that you owe in the US.  That entry is under the 'Deductions and Credits' section of your federal return.

 

If you have not paid foreign taxes in 2023 then you will file your tax return as though you were still in the US and you will pay taxes on everything that you earned in 2023.

 

@bjb7 

 

 

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