Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Earned Income Credit (EIC) Workout

Qualifying for the EIC

Case Study 2: EIC Eligibility (continued)

The scenario continues. Roger may be eligible for the EIC.

Part of Roger's income was $855 that he earned while in Canada for two weeks. He's heard about Form 2555, which is used to exclude foreign income from gross income and thereby decrease the amount of income tax.

Roger: Should I file Form 2555 to exclude my foreign income from my gross income so I can pay less income tax?

How would you respond?

That's a good idea. I can help you complete the form and then we can recalculate the taxable income on your tax return.
Not if you want to receive the earned income tax credit. You cannot receive the EIC if you exclude from gross income any income you earned in a foreign country.


Roger, parent with two young children.
Summary of EIC Eligibility Requirements

Summary of EIC Eligibility Requirements