US Foreign Earned Income Exclusion Calculator for Expats
Estimate the portion of foreign earned income eligible for the US Foreign Earned Income Exclusion (FEIE). This calculator provides an indicative amount based on user input; it does not replace professional tax advice.
- Page updated:
- Jun 10, 2026
- Tool version:
- v1.1.0
Overview
Estimate how much of your foreign salary or self-employment income you can exclude from U.S. federal income tax under the Foreign Earned Income Exclusion (FEIE, IRS Form 2555). Enter your foreign earned income, the year's exclusion cap and the days you qualified to see the amount excluded and what remains taxable.
This is an educational estimate, not tax advice. The FEIE has strict eligibility tests and interacts with the foreign tax credit, the housing exclusion and self-employment tax. Confirm your situation with the Form 2555 instructions or a cross-border tax professional.
Results
Prorated exclusion cap
$130,000.00
Income excluded from U.S. tax
$130,000.00
Foreign income still taxable in the U.S.
$20,000.00
Share of foreign income excluded
86.7
How to read the result
- What it means
- The displayed value is an estimate based on your inputs. It represents the calculated scenario under current assumptions, not a guaranteed amount.
- Calculation limits
- The model uses simplified formulas and cannot account for all variables in your specific case (local regulations, personal conditions, temporal changes).
- Next step
- Use the result as a starting point. Adjust parameters to compare scenarios and validate with a professional when needed.
Glossary+−
- Foreign Earned Income Exclusion (FEIE)
An election (Form 2555) letting qualifying taxpayers exclude foreign earned income up to an annual cap from U.S. federal income tax.
- Physical Presence Test
Qualification met by being physically present in a foreign country for at least 330 full days during any 12 consecutive months.
- Bona Fide Residence Test
Qualification met by being a bona fide resident of a foreign country for an uninterrupted period that includes a full tax year.
- Foreign Earned Income
Pay for personal services performed abroad — wages, salary, professional fees and self-employment income — excluding passive income.
- Stacking Rule
Rule taxing income above the exclusion at the tax rate that would have applied had the excluded income not been removed.
Key takeaways
Enter your foreign earned income, the year's exclusion cap and your qualifying days to see how much is excluded from U.S. tax and how much remains taxable.
Estimate only — excludes the housing exclusion, foreign tax credit interaction, self-employment tax and the stacking rule. Verify with Form 2555 instructions or a tax professional.
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Useful links
Worked examples
Example: $150,000 income, full-year qualifier, 2025 cap
A software engineer based abroad earns $150,000 and meets the physical presence test for the entire 2025 tax year.
Interpretation
$130,000 is excluded from U.S. income tax; $20,000 remains taxable (a foreign tax credit may reduce or eliminate the U.S. tax on it). Self-employment tax, if applicable, is unaffected.
Frequently asked questions
Who qualifies for the Foreign Earned Income Exclusion?
U.S. citizens or resident aliens with a tax home in a foreign country who meet either the bona fide residence test or the physical presence test (330 full days abroad in a 12-month period). See Form 2555 instructions.
Does the FEIE eliminate self-employment tax?
No. The exclusion applies to federal income tax only. Self-employed expats generally still owe 15.3% U.S. self-employment tax unless covered by a totalization agreement.
What if I only qualified for part of the year?
The cap is prorated by the days you were a qualified individual during the tax year. Enter those days and the tool reduces the maximum exclusion proportionally.
Can I exclude investment or pension income?
No. Only earned income (wages, salary, professional fees, self-employment) qualifies. Interest, dividends, capital gains and pensions are not foreign earned income.
Sources & references
- IRS — About Form 2555, Foreign Earned Income: https://www.irs.gov/forms-pubs/about-form-2555
- IRS — Foreign Earned Income Exclusion: https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion
- IRS — Figuring the Foreign Earned Income Exclusion: https://www.irs.gov/individuals/international-taxpayers/figuring-the-foreign-earned-income-exclusion
Quality & oversight
- Author
- Ugo Candido, MBA
- Maintained by
- Ugo Candido, MBA
- Page updated
- Jun 10, 2026
- Tool version
- v1.1.0