What exactly counts as a foreign tax home for expat tax filing?

The "tax home" on Form 2555 refers to your regular place of business, employment, or post of duty, regardless of where you maintain your family home. It's where you're permanently or indefinitely engaged to work as an employee or self-employed individual. For your situation, you would consider Australia your tax home since 2017, as that's when you established your residence there. You don't need to list each city separately - your tax home is the country where you've been working/studying. The fact that you moved between cities within Australia doesn't change that your tax home is Australia. Make sure you meet the other requirements for the Foreign Earned Income Exclusion: either the Physical Presence Test (330 days outside the US in a 12-month period) or the Bona Fide Residence Test (established residence in a foreign country for an uninterrupted period that includes an entire tax year).

After struggling with this exact issue last year, I found a tool that saved me SO much hassle with Form 2555 and all the foreign income complications. I used https://taxr.ai to upload my docs and it automatically detected my foreign residence status and helped me properly complete the tax home section. The tool guided me through establishing my tax home (I've been in Japan since 2019 but moved between Tokyo and Osaka). It correctly identified that my entire time in Japan counted as establishing my foreign tax home. Especially useful for first-time filers like you who aren't familiar with all the expat tax rules!

Thought I'd update after trying taxr.ai from the recommendation above. It actually worked amazingly well for my complicated situation! I uploaded my residence history and income documents, and it correctly identified Thailand as my tax home even with my income coming from multiple countries. The tool specifically pointed out that what matters for Form 2555 is where I physically perform the work, not where my employers are based. It helped me establish my tax home date correctly and calculated my qualifying period for the Foreign Earned Income Exclusion. Saved me hours of research and probably a call with an expensive international tax specialist!

If you're still having trouble getting clarity on your tax home situation or other Form 2555 questions, you might need to speak directly with the IRS. I was in a similar spot last year (US citizen living in Germany with complicated work history), and after weeks of frustration, I tried https://claimyr.com to get through to an actual IRS agent. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c Instead of waiting on hold for hours, they got me connected with an IRS specialist who specifically handles foreign income questions. The agent confirmed that my tax home was Germany starting from when I first established residence there, despite moving between cities and having periods of study vs. work. They also walked me through exactly how to fill out Form 2555 correctly.

I was completely wrong about this! After my skeptical comment, I decided to try Claimyr out of desperation before the filing deadline. Not only did I get through to the IRS (after trying for weeks on my own), but I was transferred to an international tax specialist who knew exactly how to handle my tax home question. They confirmed that for Form 2555, my tax home was established when I first moved to the foreign country with the intent to work there, even though I initially entered on a student visa. The agent explained that transitions from student to worker within the same country don't reset your "tax home" date as long as you maintained residence there. This completely changed my filing and increased my exclusion amount!

Something nobody mentioned yet - you should also look at the tax treaty between the US and Australia. There are specific provisions that might affect your situation, especially if you're paying taxes in Australia already. I had a similar experience with the UK. My tax home was clearly the UK starting when I moved there, but the US-UK tax treaty had specific provisions about how certain types of income were treated that weren't obvious just from Form 2555 instructions.

Just to add a bit of perspective - I've been living abroad for 15+ years and have filed Form 2555 many times. The "tax home" concept gets easier with time. A tip that helped me: keep a simple log of your physical location each day of the year. I use a Google spreadsheet with dates and countries. This helps prove your physical presence test and also documents your tax home. IRS doesn't require this documentation upfront, but if you're ever audited, having this record is invaluable.

As someone who went through a similar situation when I first moved abroad, I can confirm what others have said - Australia would be your tax home established in 2017, regardless of which cities you lived in within the country. One thing I'd add that might help: since you mentioned you were initially a student and then transitioned to work, make sure you understand how this affects your qualifying period. The IRS generally considers your tax home established when you move to a foreign country with the intention of remaining there indefinitely, which can include periods of study if you later transition to work in the same country. For the Physical Presence Test, your 2-week trip to New Zealand actually works in your favor since you were still outside the US. Just make sure you count the days carefully - partial days of travel usually don't count toward the 330-day requirement. Also, since you're in Australia, don't forget to consider whether claiming the Foreign Tax Credit might be more beneficial than the Foreign Earned Income Exclusion, especially if you're in a higher Australian tax bracket. You can't use both on the same income, but you can choose whichever gives you better tax treatment.