Foreign Earned Income Exclusion Calculator
US citizens and resident aliens living abroad may exclude a portion of their foreign earned income from US federal income tax using the Foreign Earned Income Exclusion (FEIE), claimed on IRS Form 2555. For tax year 2024 the annual limit is $126,500. If you qualify for only part of the year under the Physical Presence or Bona Fide Residence test, the limit is prorated by the number of qualifying days in the 365-day period you select (2024 has 366 days). Enter your foreign earned income and qualifying days to find your maximum exclusion and the taxable remainder.
FEIE formula (Form 2555)
Max exclusion = $126,500 (2024) x (qualifying days / total days in period)
Excludable = min(foreign earned income, max exclusion)
Taxable remainder = foreign earned income - excludable
The IRS adjusts the base limit each year for inflation. The 2024 limit of $126,500 is published in IRS Revenue Procedure 2023-34. For a full qualifying year of 366 days in 2024, the prorated limit equals the full $126,500.
Key points about the FEIE
- Only income earned for services performed in a foreign country qualifies. Investment income, pensions, and US-source income do not.
- You must file Form 2555 with your Form 1040 to claim the exclusion, even if no tax is owed.
- The Foreign Housing Exclusion or Deduction may provide additional relief beyond the FEIE base limit.
- Even with the full exclusion, the remaining US income is taxed at the marginal rate that would apply to the excluded income (stacking rule).
Frequently asked questions
What is the Foreign Earned Income Exclusion for 2024?
For tax year 2024 the IRS FEIE limit is $126,500 per qualifying individual, up from $120,000 in 2023. The limit is adjusted annually for inflation under IRC Section 911.
How do I qualify for the FEIE?
You must have foreign earned income, a tax home in a foreign country, and meet either the Bona Fide Residence test (full calendar year abroad) or the Physical Presence test (330 full days in a 12-month period).
How is the partial-year exclusion calculated?
If you qualify for fewer than 365 days, the exclusion is prorated: annual limit multiplied by qualifying days divided by 365 (or 366 in a leap year). The calculator uses 366 days for 2024.
Does the FEIE cover self-employment income?
Yes. The FEIE excludes qualifying self-employment income from US income tax, but self-employment tax (Social Security and Medicare) still applies to self-employed individuals overseas.
Can married couples each claim the FEIE?
Yes. Each spouse who qualifies separately may claim up to the annual limit on their own Form 2555. Filing jointly does not combine or restrict each spouse's individual exclusion.
Official sources
- IRS Publication 54, Tax Guide for US Citizens and Resident Aliens Abroad: irs.gov/publications/p54.
- IRS Form 2555, Foreign Earned Income: irs.gov/forms-pubs/about-form-2555.
- IRS Revenue Procedure 2023-34 (2024 inflation adjustments): irs.gov/irb/2023-48_IRB.
Reviewed by the CalculatorHub team, edited by James Graham, 15 June 2026. See our methodology.