--- title: IRS Announces 2022 High-Cost Locations for Foreign Housing Exclusions description: IRS issues foreign housing cost exclusion amount for 2022. image: https://www.americanpayroll.org/images/default-source/default-album/irsbuilding.jpg?sfvrsn=841999c6_0 --- [![soc-fb](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_fb.svg "soc-fb")](https://www.facebook.com/American-Payroll-Associations-Chapter-Relations-877434285724525/) [![soc-in](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_li.svg "soc-in")](http://www.linkedin.com/groups?about=&gid=1051077&trk=anet_ug_grppro) [![soc-tw](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_tw.svg "soc-tw")](https://twitter.com/APAChapters?lang=en) - [Home](https://blogs.payroll.org/chapter-leaders) - [About](https://blogs.payroll.org/about) - [Connect](https://blogs.payroll.org/connect) - [Resources](https://blogs.payroll.org/resources) ![23-PayNewsNow-Horiz-Logo](https://blogs.payroll.org/hs-fs/hubfs/23-PayNewsNow-Horiz-Logo.png?width=1300&name=23-PayNewsNow-Horiz-Logo.png "23-PayNewsNow-Horiz-Logo") [![26 PayrollOrg®RGB-NoTag long](https://blogs.payroll.org/hs-fs/hubfs/26%20PayrollOrg%C2%AERGB-NoTag%20long.jpg?width=1300&name=26%20PayrollOrg%C2%AERGB-NoTag%20long.jpg "26 PayrollOrg®RGB-NoTag long")](https://payroll.org/) ![](https://blogs.payroll.org/hs-fs/hubfs/Jyme.png?width=35&name=Jyme.png) Custom URL No Widget: By [Jyme Mariani, Esq.](https://blogs.payroll.org/pay-news-now/author/jyme-mariani-esq) on Mar 10, 2022 9:00:00 AM # IRS Announces 2022 High-Cost Locations for Foreign Housing Exclusions The IRS issued a notice providing adjustments to the limitation on housing expenses for specific locations for purposes of the foreign housing cost exclusion under IRC §911 \[Notice 2022-10, [**2022-10 IRB 815**](https://www.irs.gov/pub/irs-irbs/irb22-10.pdf)\]. The U.S. Secretary of the Treasury makes annual adjustments to this limit based on geographic differences in housing costs. Notice 2022-10 is effective for taxable years beginning on or after January 1, 2022. However, a taxpayer may elect to apply the 2022 adjusted housing limitations contained in the notice to his/her taxable year beginning in 2021. **Exclusions Allowed** IRC §911 generally allows a U.S. citizen or resident living abroad to exclude from U.S. taxable income certain foreign earned income. A qualified individual is also allowed an exclusion from gross income for certain housing costs paid or incurred on his/her behalf that exceed a certain base housing amount. A qualified individual incurring housing expenses in one or more of the listed high-cost localities in 2022 may use the adjusted limit specified (instead of $33,600) in determining the housing cost amount on Form 2555, *Foreign Earned Income*. The $33,600 limit continues to apply to a qualified individual not incurring housing expenses in a listed high-cost locality. To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out [**Payroll Source Plus**](https://ebiz.americanpayroll.org/ebusiness/ProductCatalog/Product.aspx?ID=6067)! --- *Jyme Mariani, Esq., is Managing Editor of* Payroll Currently *and Senior Manager of Payroll Information Resources for the APA.* ### Search ![payroll-logo-white](https://blogs.payroll.org/hs-fs/hubfs/payroll-logo-white.png?width=200&name=payroll-logo-white.png "payroll-logo-white") [Privacy Policy](http://www.americanpayroll.org/privacy/)     |     Acceptable Use ©[PayrollOrg](http://payroll.org) [![soc-fb](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_fb.svg "soc-fb")](https://www.facebook.com/PayrollOrg) [![soc-in](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_li.svg "soc-in")](https://www.linkedin.com/company/payroll-org/mycompany/) [![Twitter-X-White-Logo-PNG](https://blogs.payroll.org/hs-fs/hubfs/Twitter-X-White-Logo-PNG.png?width=20&height=19&name=Twitter-X-White-Logo-PNG.png)](https://twitter.com/PayNews)