Tax Term

Foreign Earned Income Exclusion (FEIE)

In one sentence: An exclusion of up to $126,500 (2024) of foreign-earned wages for qualifying US expats.

What it means

Requires meeting either the bona fide residence or physical presence test. Doesn't reduce SE tax, doesn't exempt unearned income, and doesn't end the obligation to file.

← Flexible Spending Account (FSA) Foreign Tax Credit (FTC) →