Foreign Earned Income Exclusion (FEIE)
Qualifying US citizens/residents abroad can exclude up to the annual limit of foreign earned income from US taxation. For 2024, the limit is $126,500; for 2025 (projected), $130,000.
- Requires bona fide residence OR physical presence (330 days in 12 months)
- Only applies to earned income (wages, self-employment)
- Does not reduce self-employment tax
- Must elect on Form 2555; revocation has 5-year lockout