Foreign Earned Income Exclusion Qualifier
Confirm whether you meet the 330-day physical presence threshold for the Foreign Earned Income Exclusion (FEIE) and estimate how much earned income and qualified housing expenses can be excluded this year.
Educational information, not tax advice.
Examples
- 340 days abroad, $140,000.00 income, $24,000.00 housing ⇒ Result: $122,981.92 potential exclusion
- 290 days abroad, $110,000.00 income, $15,000.00 housing ⇒ Result: $0.00 potential exclusion (physical presence test not met)
FAQ
What if I qualify under the bona fide residence test instead?
Bona fide residents may still claim FEIE with fewer than 330 days abroad. Use this output as a reference and confirm eligibility with a tax professional because residency tests require additional documentation.
How do housing caps change in high-cost cities?
IRS Publication 54 lists higher housing caps for designated high-cost locations. Substitute the published cap if it exceeds the default 30% multiplier used in this calculator.
Can I estimate tax savings from the exclusion?
Multiply the exclusion amount by your marginal tax rate to approximate federal income tax avoided. For example, excluding $100,000.00 at a 24.00% rate saves about $24,000.00.
Do partial-year assignments prorate the cap?
Yes. The calculator multiplies the annual FEIE limit by your qualifying days divided by 365 so partial-year moves automatically reduce the cap.
Additional Information
- The model references the 2024 FEIE cap of $126,500 and prorates it based on qualifying days abroad; update the limit for future tax years.
- Housing exclusion calculations use the standard 16% base housing amount and a 30% cap unless you apply a city-specific maximum.
- If you enter fewer than 330 days abroad, the physical presence test fails and the exclusion amount is returned as $0.00.
- Foreign earned income exclusion does not reduce self-employment tax, so separate planning is required for Social Security and Medicare coverage.