Hallo all again,
My foreign employer is separating pay and housing allowance in my payslip, I am a bonafide resident of a foreign country as I live there (here) year round.
The question is, what do I enter on line 19 of form 2555, just the pay or the combined amount of allowance and pay?
I know that the allowance itself goes on line 34 in Part VI.
Depending on which amount to be entered on line 19 (27) there is a huge difference on the final taxable amount in Form 1040.
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On line 19, enter the pay received, not the housing allowance. For the housing allowance, enter on line 34 in Part V1.
Thank you @DaveF1006
Yes pay, but which pay.
Let's say that my total pay is 215,000 $ and out of that 70,000 is my allowance to line 34, what goes on line 19 (and 27), 145,000 or 215,000?
Thank you.
Line 19 and 27 would be reported as $215,000.
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