Do I need to file both Form 2555 and 1040 for foreign income?

Yes, you definitely need to file both forms. Form 2555 is used specifically to claim the Foreign Earned Income Exclusion (FEIE), but it's an attachment to your regular Form 1040, not a replacement. The basic process works like this: You'll file your regular Form 1040 to report all your worldwide income (including what you earned in Dubai). Then you'll complete Form 2555 to calculate how much of your foreign income can be excluded from taxation under the FEIE (up to $126,500 for 2025 tax year). The amount you calculate on Form 2555 then carries over to your 1040 as an exclusion. Since you mentioned Dubai has no income tax, the Foreign Tax Credit probably won't benefit you much since you haven't paid foreign taxes to credit against your US tax liability. The FEIE is likely your best option in this case.

I was in almost the exact same situation last year working in Qatar! After hours of research and stress, I found this tool called taxr.ai (https://taxr.ai) that made filing with Form 2555 way easier than I expected. I uploaded my income statements and answered a few questions, and it helped me figure out all the exclusions I qualified for. The best part was that it walked me through the physical presence test calculations, which was seriously the most confusing part for me. It tracked all my travel days and showed me exactly when I qualified. Ended up saving me over $15k in taxes that I otherwise might have paid!

Coming back to say I tried taxr.ai after seeing the recommendation here and it was exactly what I needed! The interface for calculating my days abroad for the physical presence test was super intuitive - I just uploaded my flight records and it calculated everything automatically. I was also confused about the housing deduction part of Form 2555 since rent in Thailand is so much cheaper than the US, and the tool explained which expenses qualified and how to maximize my deduction based on my specific location. One thing I didn't expect was how it handled my side gig income from freelancing - it correctly identified which income could be excluded and which couldn't. Honestly so much easier than my previous attempt with TurboTax!

If you're trying to get clarity directly from the IRS about Form 2555 and your specific situation, good luck... I spent THREE WEEKS trying to get through to someone who actually understood international tax issues. Then I found Claimyr (https://claimyr.com) and they got me through to a real IRS agent in like 20 minutes. There's a demo video here: https://youtu.be/_kiP6q8DX5c The agent walked me through all the Form 2555 calculations and confirmed I was doing everything right with my income from Germany. It was such a relief to get official confirmation instead of relying on forum advice (no offense to anyone here!).

OK I have to admit I was totally wrong about Claimyr. After struggling with my Form 2555 questions for so long, I gave it a try yesterday. Got a call back in about 45 minutes and spoke with an actual IRS specialist who cleared up my confusion about the bona fide residence test for my situation in Australia. I've literally been trying to get this answered for months! The agent even sent me to a specific IRS publication that addressed my exact question about maintaining a home in the US while claiming foreign residence. Definitely worth it for the time saved alone - I spent more time on hold in one day than the entire process took with Claimyr.

One thing nobody's mentioned yet - if your income is over the FEIE limit (which is $126,500 for 2025), you might want to look into Form 1116 for Foreign Tax Credit instead of or in addition to Form 2555. But it sounds like your Dubai income is well under that limit so the exclusion is probably your simplest option.

I moved to France last year and just filed with both forms. Here's what I learned: keep DETAILED records of every single day you're in and out of the foreign country! I almost failed the physical presence test because I didn't realize my vacation back to the US for Christmas counted against my 330 days. Had to dig through old emails to find flight confirmations.

Hey Amina! I went through this exact same situation when I was working in the UAE last year. You definitely need both forms - Form 1040 is your main tax return that reports all your income, and Form 2555 is like an attachment that calculates your Foreign Earned Income Exclusion. Since you're in Dubai (no income tax), the FEIE is definitely your best bet rather than the foreign tax credit. With your $73,200 income, you should be able to exclude most or all of it if you qualify for either the physical presence test (330 days in a foreign country over 12 months) or bona fide residence test. One heads up - make sure you keep detailed records of all your travel dates! Even short trips back to the US can affect your physical presence test qualification. I learned this the hard way when I almost missed the 330-day requirement because of a family visit I forgot to account for. The IRS website is definitely confusing for international stuff. If you get stuck, don't hesitate to reach out to a tax professional who specializes in expat taxes - it's worth the peace of mind!