How and do I need to include the student internship monies received when working in Germany last summer? The company did not send me any end of year statement for income. Also it was paid in Euros.

Fortunately for you, according to the IRS code, there is a foreign earned income exclusion applicable to US citizens working overseas.

Also, starting with tax year 2006, the foreign earned income exclusion is adjusted each year for inflation by the Internal Revenue Service, and for the tax year 2008 this exclusion amount is $87,600! Thus, it would be safe to say that you would have a Zero tax liability on this income.

However, you must file Form 2555 to claim this exclusion and report the foreign earned income earned in Euro's on Part IV line 19, and on Part VII line 37 you would be entitled to the $87,600 maximum foreign earned income exclusion.

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Ask TaxGuru Please refer to the legal disclaimer.

I rented an apartment and lived in Germany for only the summer - basically 3 months. Do I qualify for the exclusion? I thought you had to live there longer? Thanks for your help.