PhyllisG
New Member

Deductions & credits

You are correct. The Form 2555-EZ is only used to claim the foreign earned income exclusion.  If the foreign housing exclusion was never used on the initial Form 2555 then it is not revoked. You have to invoke an exclusion before it is revoked. However, you have indicated that you did claim the exclusion on your 2013 tax return; therefore, it is considered revoked for subsequent years within a 5 year period.

You will have to wait until the 6th year to invoke the foreign housing exclusion again, or you can request permission from the Internal Revenue Service that will result in substantial fees.

It is recommended that in future years, you continue to use the foreign housing exclusion even if the amount results in -0-. Doing this will not take away from your income exclusion, but it will prevent you from automatically revoking the foreign housing exclusion.

Thank you for the follow-up. I will edit my previous response.