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I have entered all detail on the Form 2555 - earned income and qualifying housing, also selected bona fide resident but I cannot get the housing exclusion to populate. Line 27 will not change to YES claim the exclusion. What am I missing? Everything is flowing through accurately just not the housing exclusion.
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What you are missing is the location. Go to Screen 31.1, scroll to the very bottom, select the Location and enter the number of days during the tax year at that location, in addition to the Qualify housing expenses you should have already made an entry for.
Still an AllStar
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Thanks for your reply.
I had everything in there but actually they don't qualify for the housing exclusion. Guess that's why.
I thought Lacerte would show the workings to get to $0 on part VI rather than leaving the whole sections blank and selecting No.
First year with Lacerte! Still getting used to it all.
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NP. But in what respect that your client did not qualify? Reason I ask is that you can't leave it to Lacerte to determine eligibility.
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Probably because the housing costs were not above the threshold.
The more I know the more I don’t know.
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Ah, I missed the part about housing exclusion. Thought she's referring to FEIE.
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Hi, yes their qualifying expenses were under the threshold.
I was so focused on getting the form to populate I spaced in the fact they dont qualify and that's why it wasnt populating.
Was still expecting the form to populate to show no exclusion but no need. All works out the same.
Thanks to both.
Stay safe.