Tax
FEIE (Foreign Earned Income Exclusion)
Also known as: Foreign Earned Income Exclusion, Section 911 Exclusion, Form 2555 Exclusion
Quick answer
IRS — Form 2555 instructions, tax year 2026 · IRS — Foreign earned income exclusion eligibility · checked 9 Nov 2026
Form 2555 claims the exclusion. Eligibility depends on the taxpayer's tax home, residence or presence and the source and character of the earnings. Passive investment income and pensions are not foreign earned income for this purpose.
Income above the annual ceiling does not disqualify a taxpayer from the exclusion. Foreign tax credits cannot also be claimed for taxes attributable to excluded income. Tax on remaining income is calculated under the exclusion's stacking rules.
Sources
- IRS — Form 2555 instructions, tax year 2026 · checked 9 Nov 2026
- IRS — Foreign earned income exclusion eligibility · checked 9 Nov 2026
Related terms
Foreign Tax Credit (FTC)
The Foreign Tax Credit can reduce US income tax for qualifying foreign income taxes paid or accrued. It is subject to source, category and US-tax limitations; it is not a guaranteed refund of foreign tax. Form 1116 is generally used by individuals. Taxes attributable to income excluded under FEIE cannot also generate a credit.
Tax Residency
Tax residency is a domestic-law status used to determine a person's tax obligations. It is distinct from citizenship and permission to live in a country. Presence, homes, work and other ties can matter. A person can meet more than one country's domestic rules; an applicable tax treaty may resolve residence for treaty purposes.
IRS Streamlined Filing Compliance Procedure
The IRS Streamlined Filing Compliance Procedures are available to eligible taxpayers whose foreign-income or asset-reporting failures were non-wilful. The foreign offshore procedure requires the relevant three years of tax returns, six years of FBARs and a signed certification. Eligibility includes a specific non-residency test; living abroad alone is insufficient.
Double Taxation
International double taxation can arise when more than one jurisdiction taxes the same income. Relief may come from a treaty, a domestic foreign-tax credit or an exemption, subject to their conditions. A foreign-tax payment does not automatically eliminate all tax in the other country, and relief is not limited to countries with a treaty.
Deeper guides
FEIE vs. Foreign Tax Credit in 2026: Which Saves You More? ($132,900 Exclusion)
2026 FEIE raised to $132,900. Compare the Foreign Earned Income Exclusion and Foreign Tax Credit with worked examples by income level. Includes FBAR and FATCA requirements.
US Expat Tax Guide 2026: FEIE $132,900, FTC, and Zero-Tax Strategies
Comprehensive 2026 US expat tax guide. FEIE exclusion: $132,900 (single) / $265,800 (married). Combined with standard deduction: $149,000 zero-tax threshold. FTC, self-employment tax, Totalization Agreements, and destination tax regimes (Beckham Law, Impatriate, IFICI) explained.
Digital Nomad Tax Guide 2026: FEIE, FTC, and Country-Specific Strategies
Double taxation, tax treaties, FEIE, Foreign Tax Credits, and country-specific tax regimes — the complete 2026 tax guide for digital nomads.
US State Taxes After Moving Abroad: Which States Follow You (and How to Break Free)
California, New York, Virginia, South Carolina, and New Mexico pursue expats for state taxes after moving abroad. The FEIE does NOT protect you. Here's the 7-step checklist to cleanly break state tax residency before you leave — plus the self-employment tax trap that catches freelancers even with FEIE.
Trump's Big Beautiful Bill & Expat Taxes: What Actually Changed (and What Didn't)
The One Big Beautiful Bill is the biggest US tax overhaul since 2017 — but residence-based taxation was left out. FEIE rises to $132,900, estate exemption hits $15M, and a 1% remittance tax begins. What it all means for Americans abroad.
US Renunciation Fee Just Dropped to $450 — Here's What Americans Abroad Need to Know
The Certificate of Loss of Nationality fee is $450 from April 13, 2026. But the exit tax on assets over $2M is the real cost. FEIE ($132,900) may make renunciation unnecessary. Full breakdown of who benefits, what you lose, and alternatives.