Definition

FEIE (Foreign Earned Income Exclusion)

An IRS exclusion of up to ~$130K (2026) of foreign earned income for Americans abroad. Requires either Bona Fide Residence or Physical Presence (330-day) qualification.

The Foreign Earned Income Exclusion lets US citizens and resident aliens exclude up to roughly $130,000 of foreign earned income (2026) from US taxation. To qualify, you must meet either the Bona Fide Residence Test (a full uninterrupted tax year as a bona fide foreign resident) or the Physical Presence Test (330 full days in a foreign country during any 12-month period). Day counts matter for the Physical Presence Test, miss 330 by one day, lose the entire exclusion for that year.

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