Foreign Income Tax Exclusion or FEIE
As a citizen or resident alien of the U.S. if you live or reside in a foreign country, you are taxed on your worldwide income. However, you could qualify for the foreign earned income exclusion, thus reduce your taxable income. This page covers the qualification requirements and the foreign earned income exclusion, housing expense, housing deductions and the meal and lodiging amounts for given tax years.
The foreign earned income exclusion, the foreign housing exclusion, and the foreign housing deduction are based on foreign earned income. For this purpose, foreign earned income is income you receive for services you perform in a foreign country in a period during which your tax home is in a foreign country and you meet either the bona fide residence test or the physical presence test.
To claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction, you must meet all three of the following requirements.
- Your tax home must be in a foreign country. /li>
- You must have had foreign earned income
- You must be one of the following.
- A U.S. citizen who is a bona fide resident of one or more foreign countries for an uninterrupted time period that includes an entire tax year.
- A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect and who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes the entire tax year.
- A U.S. citizen or a resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.
TurboTax® is a registered trademark of Intuit, Inc.
H&R Block® is a registered trademark of HRB Innovations, Inc.