Expatax Guide

Income & Exclusions

How the Foreign Earned Income Exclusion and the Foreign Housing Exclusion work — and when each one is the right choice.

  1. 01
    The Bona Fide Residence Test, explained
    BFR is the second way to qualify for the FEIE — more flexible than the day-counting PPT, but it requires intent, an uninterrupted calendar year abroad, and the right facts. Here's what the IRS actually looks at.
    8 min read2555
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  2. 02
    FEIE vs. Foreign Tax Credit — which to use
    The two big ways Americans abroad avoid double taxation. They sound similar; they work nothing alike. Here's how to pick the right one — with the numbers that show why it matters.
    10 min read255511161040
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  3. 03
    The Foreign Earned Income Exclusion (FEIE), explained
    Form 2555 lets qualifying Americans abroad exclude up to ~$130,000 of foreign salary from U.S. tax. Here's how it works, who qualifies, what it doesn't cover, and where it traps people.
    11 min read255510401116
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  4. 04
    The Foreign Housing Exclusion (and Deduction), explained
    Beyond the FEIE, qualifying expats can exclude additional income spent on housing costs above a base amount — often $20,000–$60,000 more, depending on city. Here's the math, the qualifying expenses, and the city-by-city caps.
    8 min read2555
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  5. 05
    The Physical Presence Test, day by day
    330 full days abroad in any rolling 12-month window. Here's how to count them correctly, what airspace counts as, and the rolling-window trick that saves a partial year of FEIE.
    8 min read2555
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