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2020 Form 2555 Possible Calculation Issue

Level 2

Am I missing something.

On 2020 Pro Series, I entered a bona fide residence start date of prior to 2020 and an end date of 12/16/20. That is 341 days of 366 that client lived overseas in 2020, or 93.2%.  .932 appears on line 39.  Pro Series then automatically multiples line 37 (max exclusion) of $107,600 by line 39 (.932) and yields a result on line 40 of $98,699.  When I manually multiply $107,600 by .932 I get $100,283.  IS THERE AN ERROR IN THE BASE OF SOFTWARE OR AM I MISSING SOMETHING.  (NOTE:  I have housing allowance entries in Part VI)  Thank you

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Level 15

Someone else reported the software is still using the 2019 limit for calculations.


ex-AllStar

View solution in original post

4 Replies 4
Level 15

https://www.irs.gov/pub/irs-pdf/i2555.pdf

Exclusion amount. For 2020, the maximum exclusion amount has increased to $107,600.


ex-AllStar
Level 15

Someone else reported the software is still using the 2019 limit for calculations.


ex-AllStar

View solution in original post

Level 2

Thank you - I just ran the numbers using the $105,900 for 2019 - and iat 93.2% (341 days) it matches the prorated number on line 40 exactly.  That's it.  THANK YOU BOTH SO MUCH for your quick turnaround and especially SJRCPA for the detailed explanation!

 

 

Level 15

You're welcome.


ex-AllStar