RateKit › Form 2555 — Foreign Earned Income Exclusion
🇺🇸 US Expat Tax · 2026
Form 2555 — Foreign Earned Income Exclusion
Find out how much of your foreign income you can exclude from US taxes in 2026. Free estimator for Americans living abroad.
What is Form 2555? US citizens and resident aliens living abroad may exclude up to $132,900 (tax year 2026, per IRS) of foreign earned income from US taxable income using the Foreign Earned Income Exclusion (FEIE). You must pass either the Bona Fide Residence Test or the Physical Presence Test to qualify.
Your Situation
years
days
Income & Housing
$
$
days
days
Eligibility Check
⏳Qualifying test status—
⏳Tax home must be in a foreign country—
⏳Income must be earned income (wages/self-employment)—
FEIE Amount
—
excluded from US tax
Taxable Income
—
after exclusion
Est. Tax Savings
—
vs. no exclusion
Calculation Breakdown
2026 FEIE Limit$132,900
Pro-rata Factor (days abroad / days in year)—
Prorated FEIE Limit—
Your Foreign Earned Income—
Housing Exclusion (if applicable)—
Total Exclusion Claimed—
Remaining Taxable Foreign Income—
⚠️ Important Disclaimer: This calculator provides estimates only and is for informational purposes. US expat tax law is complex and changes annually. FEIE limits, housing exclusion amounts, and qualification rules vary by situation. Always consult a qualified US expat tax professional (CPA or Enrolled Agent) before filing. Do not rely on this tool for actual tax filing.
☕ RateKit runs on free coffee and the mild delusion that these calculators actually help people. If this one just saved you from a spreadsheet disaster, you could buy me an actual coffee — or don't, no popups, no guilt trip, I promise.
How the Foreign Earned Income Exclusion (Form 2555) works
US citizens and resident aliens living abroad can exclude foreign earned income from US income tax, up to an annual limit set by the IRS, by filing Form 2555. You qualify through the bona fide residence test or the physical presence test (330 full days abroad in any 12-month period).
Formula
Excluded income = min(Foreign earned income, Annual FEIE limit x Qualifying days / Days in year)
Physical presence test: 330 full days outside the US in a 12-month period
Example
If you qualify for the whole year and earn less than the annual limit, all of your foreign wages can be excluded from US income tax. If you qualify for only part of the year, the limit is prorated by qualifying days.
Frequently asked questions
Who can use Form 2555?
US citizens and resident aliens with foreign earned income and a tax home abroad who meet either the bona fide residence test or the physical presence test.
Does the FEIE remove self-employment tax?
No. The exclusion applies to income tax only; self-employed expats still owe US self-employment tax unless a totalization agreement applies.
FEIE or Foreign Tax Credit: which is better?
In low-tax countries the FEIE usually saves more; in high-tax countries the Foreign Tax Credit (Form 1116) is often better. Some expats combine both.