Which Form 2555 items specifically increase MAGI for tax computations and how are they reported?

1. What Form 2555 items matter to MAGI: the FEIE and housing exclusion/deduction

The two principal items from Form 2555 that increase MAGI are the foreign earned income exclusion (the FEIE) and the foreign housing exclusion or deduction: taxpayers enter these exclusion/deduction values on Form 2555 when qualifying under the bona fide residence or physical presence tests, and tax guidance explicitly tells filers to add back excluded foreign earned income and housing amounts when computing MAGI for eligibility tests ^{[2] [3] [1]}.

2. Where those amounts appear on tax forms and worksheets

The IRS points filers to specific Form 2555 lines for the excluded amounts (for example, the FEIE exclusion line and related housing lines such as the amounts summarized on line 45 in agency guidance), and MAGI worksheets and instructions (for credits like the Premium Tax Credit and other provisions) instruct taxpayers to add those Form 2555 figures back to AGI to arrive at MAGI for the relevant test ^{[1] [3]}.

3. How the add‑back is actually performed in practice

Practically, MAGI starts with AGI from Form 1040 and then requires adding back specific excluded income items; for tax provisions that reference foreign earned income or housing exclusions, taxpayers take the exclusion amounts reported on Form 2555 (the FEIE and housing exclusion/deduction) and add them to AGI when computing MAGI under that provision’s worksheet or instructions ^{[1] [4] [5]}.

4. Not every tax test treats Form 2555 items the same—context matters

Different tax benefits use slightly different MAGI definitions, so while many rules (for example, the Premium Tax Credit, Roth IRA contribution limits, and other eligibility thresholds) explicitly bring back Form 2555 exclusions, taxpayers must consult the specific test’s instructions or MAGI worksheet because add‑back lists vary across credits and deductions ^{[1] [6] [5]}.

5. Complexities and employer‑paid housing or other adjustments

The Form 2555 instructions warn that excluding employer‑paid housing or employer‑paid expenses can complicate the calculation—some employer‑paid housing exclusions require additional worksheet steps and formulas to determine the correct exclusion to report, which then affects the amount to be added back to AGI for MAGI purposes ^{[3] [7]}.

6. Convergence of IRS guidance and practitioner resources, and where reporting can fall short

IRS pages and the Form 2555 instructions consistently require adding back foreign income and housing exclusions for MAGI calculations tied to specific tax benefits ^{[1] [3]}, and tax-practitioner write‑ups reiterate that excluded FEIE and housing amounts reported on Form 2555 must be included in MAGI computations used for tests such as Premium Tax Credit or Roth eligibility ^{[4] [5]}; reporting gaps arise only if a taxpayer or preparer applies a single “one-size” MAGI rule instead of the credit‑specific add‑back rules directed by the IRS ^{[1] [6]}.

7. Bottom line and practical next step

The operative rule is straightforward in principle: the foreign earned income exclusion and foreign housing exclusion/deduction computed on Form 2555 are added back to AGI as specified in the IRS MAGI guidance and in individual credit/deduction worksheets (see the referenced Form 2555 lines and the MAGI worksheet for the specific tax benefit at issue); where employer reimbursements or special housing formulas apply, follow the Form 2555 instructions to derive the exact amounts to add back ^{[1] [3] [7]}.