Demystifying IRS Form 2555: Your Guide to US Tax Requirements for US Expats in the UK with Xerxes Associates LLP

"IRS Form 2555" is a crucial document for US citizens and green card holders residing in the United Kingdom. It plays a pivotal role in helping US expatriates mitigate their US tax liability on foreign-earned income. Xerxes Associates LLP, a distinguished US and UK tax advisory firm, offers expert insights into IRS Form 2555 and how we can assist US expats in the UK in optimising their tax position.

Unveiling IRS Form 2555:

Foreign Earned Income Exclusion (FEIE):

IRS Form 2555 is the tool used to claim the Foreign Earned Income Exclusion (FEIE). The FEIE allows US expats to exclude a specific amount of their foreign-earned income from US taxation.

Qualifying for the FEIE:

To qualify for the FEIE using IRS Form 2555, US expats must meet specific criteria related to their tax residency status and the nature of their income. This exclusion limit varies each tax year, and for 2022, it is $112,000 per qualifying individual.

Impact on US Tax Liability:

IRS Form 2555 has a direct impact on an individual’s US tax liability, as it reduces the taxable income, potentially resulting in lower overall tax obligations.

How Xerxes Associates LLP Can Assist:

Xerxes Associates LLP offers expert guidance on IRS Form 2555 for US expats in the UK:

Eligibility Assessment:

We help US expats determine their eligibility for the Foreign Earned Income Exclusion and assess whether IRS Form 2555 is the right option for them.

Form 2555 Filing:

Our team assists in accurately preparing and submitting IRS Form 2555 to claim the Foreign Earned Income Exclusion, ensuring that all relevant income is properly excluded.

Tax Planning:

Xerxes Associates provides personalised tax planning services to help US expats optimise their tax position, make the most of available exclusions, and minimise their US tax liability.

Compliance Support:

We ensure that US expats meet all US tax requirements, including accurate reporting of worldwide income, foreign bank account reporting (FBAR), and other obligations.

IRS Form 2555 is a valuable tool for US expatriates in the UK to reduce their US tax liability on foreign-earned income. Xerxes Associates LLP is your trusted partner in understanding and optimising IRS Form 2555. We provide expert guidance to help you navigate the complexities of US tax requirements, ensure compliance with IRS regulations, and make informed decisions to manage your tax obligations while living in the United Kingdom.

Contact us via or fill out our contact form to discuss your expat tax situation with us.

Read more here: Xerxes US Expats Living & Working in the UK Blog.