US Foreign Earned Income Exclusion Calculator - FEIE Calculator 2025
Free calculator to estimate Foreign Earned Income Exclusion, housing exclusion, physical presence test qualification, and net U.S. tax liability for Americans living abroad
FEIE Calculator 2025
Results
What is a US Foreign Earned Income Exclusion Calculator?
A US Foreign Earned Income Exclusion (FEIE) Calculator is a free tax planning tool that helps Americans living abroad estimate their Foreign Earned Income Exclusion, Foreign Housing Exclusion, and net U.S. tax liability for 2025. It calculates the $126,500 FEIE exclusion, prorated amounts for partial years, housing cost exclusions, and remaining taxable income.
This calculator is essential for:
- Expat tax planning - Estimate U.S. tax liability while living abroad
- Physical presence test - Verify 330-day qualification requirement
- Housing exclusion optimization - Calculate additional exclusions beyond FEIE
- Self-employment tax planning - Understand SE tax still applies to excluded income
- Form 2555 preparation - Prepare accurate FEIE claims for tax filing
For calculating total federal income tax on remaining taxable income, use our Federal Income Tax Calculator to determine your complete tax liability on income that exceeds the FEIE exclusion.
To understand payroll taxes if you work for a U.S. employer abroad, explore our Payroll Tax Calculator for comprehensive FICA withholding calculations.
For comparing your foreign income to equivalent U.S. salaries, check our Salary Calculator to see the net income differences between countries.
To calculate state tax obligations if you maintain state residency, try our State Income Tax Calculator for state-specific tax planning.
For understanding Social Security and Medicare taxes on self-employment income abroad, use our Self-Employment Tax Calculator to determine the 15.3% SE tax liability.
How FEIE Calculator Works
The calculation follows IRS Form 2555 guidelines for Foreign Earned Income Exclusion (2025):
Physical Presence Test
Qualified = Days Outside US >= 330 days in 12 months
Proration = (Days Outside / 365) × $126,500
FEIE Exclusion Calculation
Max FEIE 2025 = $126,500
FEIE Exclusion = Min(Foreign Income, Prorated Max FEIE)
Foreign Housing Exclusion
Base Amount = $50,600 (40% of $126,500)
Housing Exclusion = Max(0, Housing Costs - Base Amount)
Max Housing = $63,250 (50% of FEIE limit)
Self-Employment Tax (If Applicable)
SE Tax = Foreign Income × 15.3%
Note: FEIE does NOT exclude income from SE tax
Taxable Income
Total Exclusion = FEIE Exclusion + Housing Exclusion
Taxable Income = Max(0, Foreign Income - Total Exclusion)
The Bona Fide Residence Test is an alternative to the Physical Presence Test, requiring genuine residence in a foreign country for an uninterrupted tax year. This calculator focuses on the Physical Presence Test as it's more commonly used and easier to verify.
Key Concepts Explained
Foreign Earned Income
Wages, salaries, professional fees, and self-employment income earned from services performed in a foreign country. Does not include passive income like interest, dividends, capital gains, pensions, or rental income which are not eligible for FEIE.
Physical Presence Test
You must be physically present in a foreign country or countries for at least 330 full days during any 12-month period. The 12-month period can begin on any day and doesn't need to align with the calendar or tax year.
Bona Fide Residence Test
Alternative qualification requiring you to be a bona fide resident of a foreign country for an uninterrupted period that includes an entire tax year. Factors include intent, establishment of home, participation in local activities, and duration of stay.
Self-Employment Tax Trap
Critical: Even if your foreign income is fully excluded from income tax via FEIE, you still owe the full 15.3% self-employment tax (12.4% Social Security + 2.9% Medicare) on net earnings from self-employment. FEIE only excludes income from income tax, not SE tax.
How to Use This Calculator
- Enter foreign earned income - Input your total wages, salary, or self-employment income earned from work performed abroad (exclude passive income)
- Enter days outside US - Count full days physically present in foreign countries during the relevant 12-month period (need 330+ days to qualify)
- Select filing status - Choose Single, Married Filing Jointly, Married Filing Separately, or Head of Household for accurate calculations
- Enter foreign housing costs - Include rent, utilities, insurance, and reasonable housing expenses (exclude lavish or extravagant amounts)
- Indicate self-employment status - Select Yes if you're self-employed to calculate the 15.3% self-employment tax that still applies
- Enter state tax rate - Input your home state's tax rate if you maintain state residency (use 0 if no state tax obligation)
- Click Calculate - View your FEIE exclusion, housing exclusion, taxable income, and total tax savings instantly
Benefits of Using This Calculator
- Accurate FEIE calculations - Calculate exact foreign earned income exclusion using 2025 IRS limit of $126,500 with automatic proration for partial years
- Physical presence verification - Instantly check if you meet the 330-day requirement and see prorated exclusion amounts for your specific situation
- Housing exclusion optimization - Calculate additional tax savings from foreign housing costs exceeding the $50,600 base amount for maximum benefit
- Self-employment tax clarity - Understand that FEIE doesn't eliminate the 15.3% SE tax, avoiding costly surprises when filing taxes
- Tax planning insights - Make informed decisions about working abroad, relocation timing, and optimal duration of foreign assignments for maximum exclusions
- Form 2555 preparation - Generate accurate estimates to prepare IRS Form 2555 and avoid errors that could trigger audits or disqualification
Factors That Affect Your Results
- Days outside the US - Must meet 330-day minimum in any 12-month period. Even 329 days disqualifies you entirely. Partial days don't count; only full 24-hour periods qualify.
- Type of foreign income - Only earned income qualifies (wages, salaries, self-employment). Passive income like interest, dividends, capital gains, pensions, and social security are ineligible for FEIE.
- Partial year proration - If you qualify for less than full year, exclusion is prorated. Moving abroad mid-year significantly reduces your maximum exclusion amount for that tax year.
- Housing cost limits - Housing exclusion requires costs to exceed $50,600 base. Maximum housing exclusion is capped at $63,250 (50% of FEIE limit), limiting benefits in expensive cities.
- Self-employment status - Self-employed individuals still owe 15.3% SE tax on excluded income. This can result in substantial tax bills even with full FEIE exclusion, unlike W-2 employees.
- State tax residency - Some states (CA, VA, NM) may still tax foreign income even if excluded federally. Establishing non-residency before moving abroad is critical for maximum savings.
Frequently Asked Questions
What is the Foreign Earned Income Exclusion for 2025?
The Foreign Earned Income Exclusion (FEIE) allows qualifying U.S. citizens and resident aliens to exclude up to $126,500 of foreign earned income from U.S. taxation in 2025. This exclusion is adjusted annually for inflation and can significantly reduce your U.S. tax liability when living abroad.
What are the requirements to qualify for FEIE?
To qualify, you must pass either the Physical Presence Test (330 full days outside the U.S. in any 12-month period) or the Bona Fide Residence Test (genuine residence in a foreign country for an uninterrupted tax year). You must also have foreign earned income from personal services performed abroad.
Does FEIE eliminate self-employment tax?
No, the Foreign Earned Income Exclusion does not eliminate self-employment tax. Even if your foreign income is excluded from income tax, you still owe the full 15.3% self-employment tax (Social Security and Medicare) on net earnings from self-employment.
What is the Foreign Housing Exclusion?
The Foreign Housing Exclusion allows you to exclude certain housing costs (rent, utilities, insurance) that exceed a base amount of $50,600 (40% of the FEIE limit). This provides additional tax relief beyond the standard $126,500 exclusion for Americans living in expensive foreign cities.
Can I claim FEIE for a partial year abroad?
Yes, if you qualify for only part of the tax year, your exclusion is prorated based on the number of qualifying days. For example, if you qualify for 183 days (50% of the year), your maximum exclusion would be $63,250 (50% of $126,500).
Do I still need to file a U.S. tax return if I claim FEIE?
Yes, U.S. citizens and resident aliens must file a tax return if their income exceeds filing thresholds, even if all income is excluded under FEIE. You claim the exclusion by filing Form 2555 with your Form 1040. Failure to file can result in penalties and loss of the exclusion.