I'm a U.S citizen living abroad, I use form 2555. Last year I had employment income and also unemployment income. Where to claim unemployment income? Can it be excluded?

I always exclude my foreign employment income on for 2555 but last year I also received unemployment compensation (also in a foreign country). Can it be excluded on form 2555 or does it get claimed somewhere else?

1971

1 Best answer

New Member

Jun 5, 2019 4:57:26 PM

Yes you can claim a foreign earned income exclusion for foreign severance /unemployment income.

New Member

Jun 5, 2019 4:57:26 PM

Yes you can claim a foreign earned income exclusion for foreign severance /unemployment income.

Level 1

Aug 17, 2020 1:55:46 PM

Why do you say that? IRS guidance states that severance pay, if based on accrued leave time can be be included in the Foreign Earned Income Exclusion. However, it also states that severance pay that is not based on accrued leave time and Supplemental Security Income (SSI) Unemployment Insurance can not.

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I'm a U.S citizen living abroad, I use form 2555. Last year I had employment income and also unemployment income. Where to claim unemployment income? Can it be excluded?