What Is the Foreign Earned Income Exclusion Calculator?
The Foreign Earned Income Exclusion (FEIE) lets qualifying US expats exclude a large portion of foreign earned income from US federal tax. This calculator estimates how much of your income remains taxable after the exclusion.
How to use this calculator
Type your numbers into the fields above. The results change the moment you edit any input, so you can try one scenario after another and see exactly what moves. Most calculators show a short summary of the key figures, a line-by-line breakdown underneath, and — where it applies — a year-by-year schedule you can export to a spreadsheet. Everything runs in your browser; nothing is stored or sent anywhere. Treat the output as a planning estimate, not as final word on a real decision.
The Formula
Excluded amount = the lesser of your foreign earned income and the annual exclusion limit. Taxable US income = foreign income − excluded amount. The calculator then applies federal brackets to the remaining taxable income.
Worked Example
With $120,000 of foreign earned income and a $126,500 exclusion, the entire amount is excluded and US federal tax on it is zero. Earn $150,000 and only $126,500 is excluded, leaving $23,500 taxed at normal rates.
Tips for the Most Accurate Estimate
- Confirm you meet the physical-presence or bona-fide residence test.
- The exclusion applies to earned income, not investments or pensions.
- High earners may still owe US tax above the limit.
- Excluding income can raise your effective rate on the remainder.
- Consider the foreign tax credit as an alternative in some cases.
Frequently Asked Questions
Q: Who qualifies for the FEIE?
US citizens or residents who pass either the physical-presence test (330 full days abroad in 12 months) or the bona-fide residence test.
Q: Does the FEIE remove all US tax?
Only up to the exclusion limit on earned income. Income above it, and most unearned income, remains taxable.
Q: FEIE or foreign tax credit?
It depends. The credit can be better when foreign taxes are high; the exclusion is often simpler for moderate earned income. Compare both.