Calculateus

Foreign Earned Income Exclusion Calculator

Calculate how much of your foreign-earned income can be excluded from US federal tax.

Result

Excludable Amount
$130,000.00
Remaining Taxable Foreign Income
$10,000.00

Uses the 2025 FEIE limit. To qualify, you generally must meet either the Physical Presence Test (330 full days abroad in a 12-month period) or the Bona Fide Residence Test - the exclusion is prorated for partial qualifying years, which this simplified calculator doesn't model.

About the FEIE Calculator

The Foreign Earned Income Exclusion Calculator estimates how much of a taxpayer's foreign-earned wages can be excluded from US federal income tax under the FEIE, and how much remains taxable above that limit. It's built for US citizens and resident aliens living and working abroad who want a quick check on the exclusion amount before working through Form 2555 in full.

How It Works

Enter your total foreign earned income for the year. The calculator compares that figure to the annual FEIE limit and excludes whichever amount is smaller, then reports any income above the limit as still taxable in the US, subject to normal filing rules.

excluded amount = min(foreign earned income, 130,000). taxable remainder = max(foreign earned income - 130,000, 0).

Examples

Income fully under the limit

A remote employee earns $95,000 while living and working abroad for a full qualifying year. Since $95,000 is below the $130,000 limit, the entire amount is excludable and the taxable remainder is $0.

Income above the limit

A contractor earns $180,000 in foreign-earned income for the year. The calculator excludes $130,000 and shows a taxable remainder of $50,000 ($180,000 minus $130,000), which remains subject to US federal tax.

Advantages

  • Gives expatriates and remote workers abroad an immediate estimate of how much of their foreign salary escapes US tax before consulting a preparer.
  • Clarifies the income above the exclusion limit, so planning for remaining US tax liability isn't a surprise at filing time.
  • Useful for comparing the impact of staying under versus exceeding the annual exclusion threshold when negotiating compensation.

Common Mistakes

  • Assuming the full exclusion applies without actually having met the Physical Presence Test or Bona Fide Residence Test days requirement for the tax year.
  • Forgetting to prorate the exclusion limit for a partial qualifying year, such as someone who moved abroad mid-year and only qualifies for part of it.
  • Applying the FEIE to passive foreign income like rental or investment income, when the exclusion only covers earned income from services performed abroad.

Edge Cases to Watch For

  • The $130,000 limit used here is the full-year figure; someone who didn't qualify under the Physical Presence Test or Bona Fide Residence Test for the entire calendar year has the exclusion prorated by qualifying days, which this simplified calculator doesn't model.
  • Qualifying for the exclusion at all requires passing either the 330-full-days-abroad Physical Presence Test or the Bona Fide Residence Test; the calculator assumes one of these is already met and only computes the dollar amount.
  • The exclusion applies to earned income, such as wages or self-employment income for services performed abroad, not to passive income like interest, dividends, rental income, or capital gains earned while abroad.
  • Excluded income can still affect the "stacking" calculation used to set the tax rate on remaining non-excluded income, an effect not reflected in this simple exclusion-and-remainder split.

Common Use Cases

  • US expatriates and remote workers living abroad estimating their exclusion before completing Form 2555.
  • Digital nomads deciding how income near the exclusion threshold affects their overall US tax exposure.
  • Tax preparers giving clients a fast first-pass estimate before running a complete return with proration and stacking adjustments.
Written & fact-checked by the Calculateus TeamLast updated August 5, 2026How we verify our formulas

Frequently asked questions

Does the exclusion mean expats never pay US tax on foreign income?

Not necessarily - income above the exclusion limit is still taxable, and even excluded income can affect your tax bracket for any remaining US-taxable income under the "stacking rule," plus self-employment tax still generally applies to self-employed expats regardless of the income exclusion, since FEIE only excludes income tax, not SE tax.

Related calculators

Income Tax EstimatorEstimate your US federal income tax using 2025 marginal tax brackets.Self-Employment Tax CalculatorEstimate self-employment tax (Social Security + Medicare) on your net earnings.Sales Tax CalculatorCalculate sales tax and total price for a purchase.VAT CalculatorAdd or remove VAT from a price.

Related articles

Effective vs. Marginal Tax Rate: Why They're So DifferentThese two numbers are often confused, but they answer completely different questions. Here's how to calculate both correctly.What Your Marginal Tax Rate Actually MeansYour marginal tax rate is the rate on your next dollar of income, not your whole income. Here's why that distinction matters so much.How Property Tax Is Calculated on Your HomeProperty tax is based on assessed value, not market value — and the two aren't always the same number. Here's how it actually works.

Conclusion

This calculator gives a simplified, full-year estimate of the FEIE exclusion and remaining taxable foreign income, useful as a planning reference. Anyone with a partial qualifying year, passive foreign income, or a need to calculate the stacking rate on remaining income should work through Form 2555 in full or consult a qualified preparer.

References