FEIE Calculator: Foreign Earned Income Exclusion for US Expats
US citizens and green card holders are taxed on worldwide income, but the Foreign Earned Income Exclusion (FEIE) lets qualifying expats exclude up to $132,900 of foreign wages/self-employment income from US federal tax in 2026 (Form 2555). You qualify via the Physical Presence Test (330 full days abroad in any 12-month period) or the Bona Fide Residence Test. This calculator estimates your excludable amount from your foreign income and qualifying days.
2026 FEIE cap is $132,900 (up from $130,000 in 2025), prorated by qualifying days if you don't have a full qualifying year. You must still file a US return and Form 2555 to claim it, this doesn't exempt you from filing.
2026 FEIE cap of $132,900 per IRS inflation adjustments (Notice 2025-... series); 2025 cap was $130,000. This is a simplified estimate, not tax advice, actual eligibility, the foreign housing exclusion, and self-employment tax treatment depend on your full situation.
How to use this tool
- Enter your total foreign earned income (wages or self-employment income for work performed abroad) for the tax year.
- Enter how many qualifying days you were physically present abroad: 330 full days in any 12-month period passes the Physical Presence Test.
- Uncheck 'full tax year' if you moved abroad partway through the year, the exclusion cap is prorated for a partial year.
- Press Calculate to see your excludable amount and remaining taxable income.
Frequently asked questions
What is the Foreign Earned Income Exclusion?
A US tax provision (IRC Section 911) letting qualifying Americans living abroad exclude foreign wages or self-employment income from US federal income tax, up to $132,900 per person for 2026. You claim it on Form 2555 attached to your Form 1040. It does not exclude you from filing a US return; citizenship-based taxation still requires filing every year.
How do I qualify: Physical Presence vs Bona Fide Residence?
The Physical Presence Test requires 330 full days abroad in any 12-month period (the easiest to prove objectively). The Bona Fide Residence Test requires establishing genuine tax residence in a foreign country for an uninterrupted period including a full calendar year, more subjective but allows more travel back to the US.
Can married couples both claim FEIE?
Yes, if both spouses have qualifying foreign earned income and each independently meets the test, each can exclude up to their own $132,900 cap on separate Form 2555s, for a combined $265,800 in 2026.
Does FEIE cover self-employment (SE) tax?
No: FEIE only excludes income from federal income tax, not from self-employment tax (Social Security/Medicare, ~15.3%) unless a Totalization Agreement between the US and your host country applies. Many self-employed expats still owe SE tax on excluded income.
Should I use FEIE or the Foreign Tax Credit instead?
It depends on your host country's tax rate. In high-tax countries, the Foreign Tax Credit (crediting foreign tax paid dollar-for-dollar against US tax) often beats FEIE. In low or no-tax countries (UAE, Qatar), FEIE is usually better since there's little foreign tax to credit. Many expats use both strategically, talk to a cross-border tax preparer for your specific mix.