Income & Exclusions
How the Foreign Earned Income Exclusion and the Foreign Housing Exclusion work — and when each one is the right choice.
- 01→The Bona Fide Residence Test, explainedBFR 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 read
2555 - 02→FEIE vs. Foreign Tax Credit — which to useThe 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 read
255511161040 - 03→The Foreign Earned Income Exclusion (FEIE), explainedForm 2555 lets qualifying Americans abroad exclude up to $130,000 of foreign salary from U.S. tax for 2025. Here's how it works, who qualifies, what it doesn't cover, and where it traps people.11 min read
255510401116 - 04→The Foreign Housing Exclusion (and Deduction), explainedBeyond 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 read
2555 - 05→The Physical Presence Test, day by day330 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 read
2555