United States
Foreign Earned Income Exclusion (FEIE)

What is Foreign Earned Income Exclusion ?

The FEIE is a tax benefit that allows you to exclude a certain amount of foreign earned income from U.S. taxation, one of the ways that the Internal Revenue Service allows expats to double taxation on their foreign-sourced income.

Who Eligible for the Foreign Earned Income Exclusion ?

If you are a US resident alien and you live abroad or are a US citizen, you are taxed on your worldwide income. To claim FEIE benefits, your tax home must be in a foreign country and you must have foreign earned income.

How to Qualify for the Foreign Earned Income Exclusion ?

Must be an actual resident of a foreign country for the entire tax year and Must be physically present in a foreign country for at least 330 days during any 12 month period.


How Much is the Foreign Earned Income Exclusion ?

Every year, the amount of Foreign Earned Income Exclusion is adjusted for inflation. For 2022, the foreign earned income exclusion limit is $112,000.

Which Foreign Income Can Exclude From FEIE ?

All income must be earned in a foreign country to count as foreign earned income. Foreign earned income includes wages, bonuses, commissions, salaries and self-employment income.

Exemption Due to Unfavorable Circumstances

If you are forced to leave abroad due to adverse circumstances such as war or civil unrest, the minimum time requirements for both the physical presence test and the actual residence may be waived.

How to Claim the Foreign Earned Income Exclusion ?


A taxpayer must file IRS Form 2555 to claim FEIE and attach this form to a US personal income tax return.