This article will help resolve the following e-file critical diagnostic that states:
- e-file: Form 2555: For e-file returns, the IRS requires each Form 2555 to have a unique SSN. Married filing joint return are allowed one Form 2555 for the taxpayer and one for the spouse, all other filing statuses are allowed one Form 2555 for the taxpayer (ref. #6567).
E-file returns can only have one Form 2555 or 2555EZ per taxpayer and/or spouse. If more than the allowed number of forms are included with the return it must be paper-filed. Multiple W-2's from the same employer paid to the same taxpayer in the same qualified period may be included on a single Form 2555 and e-filed.
Follow these steps to resolve the diagnostic:
- Go to Input Return ⮕ Deductions ⮕ Foreign Income Exclusion (2555)
- If entering multiple foreign income W-2s on a single Form 2555, be sure only one employer is listed in the Employer subsection under General Information.
- If multiple employers are listed under General Information, the program assumes there are multiple qualified periods and will generate a critical diagnostic, as well as double the exclusion amount.