U.S. citizens and resident aliens working abroad can exclude a capped amount of foreign earned income from U.S. tax entirely, if they meet the bona fide residence or physical presence test.
How it works
The exclusion is the smaller of actual foreign earned income or the current-year FEIE limit. Whatever foreign income exceeds that limit remains subject to U.S. tax.
What this does not include
This assumes the bona fide residence or physical presence test is already met — the FEIE isn’t automatic, and this calculator computes the dollar benefit only, not eligibility itself. It also doesn’t compute the related foreign housing exclusion/deduction.
How to use this calculator
- Enter foreign earned income and the current-year FEIE limit.
Frequently asked questions
Can a married couple each claim the exclusion?
Yes — if both spouses independently qualify and both have their own foreign earned income, each can claim the full exclusion against their own income.
Does the FEIE apply to investment income?
No — it applies only to earned income (wages, self-employment income) from services performed abroad, not to passive income like dividends or interest.
Can I also claim the Foreign Tax Credit on the same income?
Generally not on the same dollar of income — the FEIE and FTC both relieve double taxation but can’t both apply to identical excluded income, which this site’s foreign tax credit calculator addresses separately.
