U.S. · Tax forms
Schedule 1 line 8d, foreign earned income exclusion.
A negative number that comes from Form 2555, line 45, and changes how your tax is figured.
Line 8d (“Foreign earned income exclusion from Form 2555”) is where you enter the foreign earned income and housing exclusion from Form 2555, line 45. Put it in the preprinted parentheses as a negative number. If you enter an amount from line 45, you must also figure your tax with the Foreign Earned Income Tax Worksheet.
Look up a line 8d question
Result
Schedule 1 Line 8d at a glance, 2025 edition
| Topic | Meaning | What the IRS says |
|---|---|---|
| Where the amount comes from | Form 2555, line 45 | Enter the amount of your foreign earned income and housing exclusion from Form 2555, line 45 |
| How to enter it | In the preprinted parentheses | Enter the amount in the preprinted parentheses (as a negative number) |
| What it offsets | Other amounts on line 8 | It is subtracted from the amounts on lines 8a through 8c and lines 8e through 8z |
| Tax worksheet | Foreign Earned Income Tax Worksheet | Complete the Foreign Earned Income Tax Worksheet if you enter an amount on Form 2555, line 45 |
| Form 1040 line 16 | Do not use the normal tax result | If you are filing Form 2555, do not enter the Tax Table or Tax Computation Worksheet result on line 16; enter it on line 4 of the Foreign Earned Income Tax Worksheet |
| Where the line total goes | Line 9, then line 10 | Line 9 adds lines 8a through 8z; line 10 combines lines 1 through 7 and 9 and goes to Form 1040, line 8 |
Why line 8d is a negative number
Most of Schedule 1, Part I adds income. Line 8d is different: the amount is shown in parentheses because it subtracts. The exclusion itself is figured on Form 2555, and the 2025 Schedule 1 simply carries the result from line 45 of that form. Because the wages you excluded were already included on Form 1040, line 1a (or another line), the negative amount on line 8d is what takes them back out of total income.
The part people miss: the tax worksheet
Entering a line 45 amount changes the tax calculation, not just the income. The Form 1040 instructions say that if you claimed the foreign earned income exclusion, housing exclusion, or housing deduction on Form 2555, you must figure your tax with the Foreign Earned Income Tax Worksheet. The result is the amount that goes on Form 1040, line 16, so the Tax Table alone will give the wrong answer.
Worked example
Dana lived and worked abroad all of 2025 and Form 2555, line 45, shows an exclusion of $60,000. She also has $100,000 of wages on Form 1040, line 1a and no other Schedule 1 income. Line 8d shows (60,000), line 9 is -60,000, line 10 is -60,000, and Form 1040, line 8 carries -60,000. Total income on line 9 is $100,000 minus $60,000, or $40,000. The amounts are made up, and Form 2555 decides how much can actually be excluded.
Who this does not cover
This page explains where the figure goes. Whether you qualify for the exclusion, and how much, is decided on Form 2555 and its instructions, which are separate from the documents cited below. If you live abroad, a tax professional who handles expatriate returns can confirm your Form 2555.
More line pages in this set
Related lines: Schedule 1 Line 8, Schedule 1 Line 10.
Sources
- Instructions for Form 1040 and 1040-SR (2025): Page last reviewed or updated May 7, 2026. Read November 2, 2026.
- Schedule 1 (Form 1040) 2025 Read November 2, 2026.
Tax year 2025 forms and instructions (Instructions for Form 1040 page last reviewed or updated May 7, 2026). Line labels were read from the IRS form PDFs posted on the date read; line numbers and labels change between tax years, so check them against the form for your tax year. Names in worked examples are made up.
Frequently asked questions
What is Schedule 1 line 8d?
It is the line for the foreign earned income exclusion and housing exclusion from Form 2555. You enter the amount from Form 2555, line 45, as a negative number in the preprinted parentheses.
Why is the amount in parentheses?
Because it reduces income. The instructions say the amount from Form 2555, line 45, is subtracted from the other amounts of income listed on lines 8a through 8c and lines 8e through 8z.
Do I need a special worksheet if I use line 8d?
Yes. If you enter an amount on Form 2555, line 45, you complete the Foreign Earned Income Tax Worksheet to figure the tax that goes on Form 1040, line 16.
Does line 8d feed into Form 1040?
Yes, through the totals. Line 9 adds lines 8a through 8z, line 10 combines lines 1 through 7 and 9, and line 10 is entered on Form 1040, line 8.
Is this the line to claim the exclusion itself?
No. The exclusion is figured on Form 2555. Line 8d only carries the line 45 result to Schedule 1.
Not tax advice
This page summarizes IRS instructions, mostly written for the people who prepare the form, and is not tax, legal or financial advice. A CPA or an enrolled agent can confirm what a line means for your return. Everything runs in your browser; nothing you enter is sent anywhere.