Foreign Earned Income Exclusion Calculator
Estimate your potential tax savings with the Foreign Earned Income Exclusion (FEIE) based on your international income and residency status.
What is the Foreign Earned Income Exclusion?
The Foreign Earned Income Exclusion (FEIE) allows eligible U.S. citizens and residents living and working abroad to exclude a certain amount of their foreign earned income from U.S. federal income tax.
For tax year 2024, you can exclude up to $126,500 of foreign earned income if you meet either the Bona Fide Residence Test or the Physical Presence Test.
Note: This calculator provides estimates only. For specific tax advice, please consult with a qualified tax professional.
Residency & Qualification Information
You need at least 330 days outside the US in a 12-month period to qualify for the Physical Presence Test
Progress toward Physical Presence Test qualification:
You need 330 days outside the US in a 12-month period to qualify.
Income Information
Income earned while physically working in a foreign country
Income earned while working in the US or from US sources
Rent, utilities, insurance, etc. (excludes purchased property, furniture, etc.)
Additional Tax Information
Standard/itemized deductions, child tax credits, etc.
For Foreign Tax Credit calculation
Note: Self-employment tax still applies to excluded income
Your Estimated Tax Savings with FEIE
Based on your inputs, this is your potential tax savings using the Foreign Earned Income Exclusion.
FEIE Calculation Summary
Tax Comparison
Important Notes & Recommendations
Disclaimer: This calculator provides estimates only and does not constitute tax or legal advice. Tax laws and regulations regarding foreign earned income are complex and subject to change. The actual tax benefits may differ based on your specific circumstances and current IRS regulations. We recommend consulting with a qualified tax professional who specializes in expatriate taxation before making any tax-related decisions.
For U.S. citizens and resident aliens living and working abroad, understanding your tax obligations can be complex. One of the most significant tax benefits available to eligible individuals is the Foreign Earned Income Exclusion (FEIE). This exclusion allows you to exclude a certain amount of your foreign earned income from U.S. federal income tax, potentially leading to substantial savings. However, determining your eligibility and accurately calculating the exclusion amount can be intricate, involving specific residency and physical presence tests. This is where the WorkToolz Foreign Earned Income Exclusion Calculator becomes an essential tool.
Our Foreign Earned Income Exclusion Calculator is designed to simplify this complex process, providing a straightforward and easy-to-understand way to estimate your potential tax savings. We understand that tax regulations can often feel overwhelming, filled with specialized terminology. That’s why we’ve crafted this tool with a natural, human tone, ensuring that you don’t need a deep understanding of tax law to utilize it effectively. It guides you through the necessary inputs, making the calculation accessible to anyone living and working overseas.
To accurately determine your eligibility and potential exclusion, the calculator walks you through key residency and qualification information. You’ll need to specify your residency method, whether you meet the Bona Fide Residence Test or the Physical Presence Test, along with relevant dates for your period of exclusion. The Physical Presence Test, for instance, requires you to be physically present in a foreign country for a specific number of days within a 12-month period. Our calculator helps you verify if you meet these crucial criteria, which are fundamental to claiming the FEIE.
Beyond eligibility, the tool also requires you to input your income information, including your total foreign earned income, housing expenses (if applicable), and any U.S. sourced income. It accounts for various income types, whether it’s compensation received while working in a foreign country or income derived from a U.S. operation. Furthermore, the calculator considers additional tax information like your tax year and filing status, ensuring that all relevant factors are integrated into the calculation. This comprehensive approach means you get a more accurate estimate tailored to your unique situation.
The WorkToolz Foreign Earned Income Exclusion Calculator empowers expatriates and individuals working abroad to gain a clearer understanding of their tax liability and potential savings. It acts as an excellent preliminary assessment tool, helping you to quickly gauge the financial benefits of the FEIE before consulting with a tax professional. By providing a clear and quick estimate, it enables you to make more informed financial decisions, manage your income effectively, and ensure you are taking advantage of all eligible tax benefits. Use our intuitive and user-friendly calculator today to take the first step towards optimizing your U.S. tax obligations while living overseas.