Calculate Your FEIE Tax Savings for 2025
Foreign Earned Income Exclusion Calculator 2025
Calculate your potential tax savings with the FEIE 2025 limit of $130,000 (updated from $126,500 in 2024). This free calculator determines your qualification under both Physical Presence Test (330+ days abroad) and Bona Fide Residence Test. No registration, no paywall, instant results.
Key 2025 Benefits:
- Exclude up to $130,000 of foreign earned income
- Potential savings: $15,000-$35,000+ annually
- Additional housing exclusion up to $37,950
- Must file Form 2555 to claim
FEIE Calculator: Frequently Asked Questions
Get answers to common questions about Foreign Earned Income Exclusion calculations
The Foreign Earned Income Exclusion (FEIE) allows qualifying US citizens and resident aliens to exclude up to $130,000 of foreign earned income from US federal taxes for 2025 (increased from $126,500 in 2024). This exclusion can result in significant tax savings – typically $15,000 to $40,000+ annually depending on your income level.
To qualify for FEIE, you must meet one of two tests:
1. Physical Presence Test: Be physically present in a foreign country for at least 330 full days during any 12-month period.
2. Bona Fide Residence Test: Be a bona fide resident of a foreign country for an uninterrupted period that includes an entire tax year.
Yes! FEIE per person married couples can each claim the full exclusion if both spouses meet the qualification requirements. For 2025, this means:
• Each spouse: Up to $130,000 exclusion individually
• Combined potential: $260,000 total exclusion for married couples
The foreign housing exclusion allows additional tax savings beyond the basic FEIE limit. For 2025:
• Base amount: $20,800 (16% of FEIE limit)
• Maximum exclusion: $39,000 (30% of FEIE limit)
• Additional exclusion: Up to $18,200 for qualifying housing expenses
The physical presence test requires you to be physically present in foreign countries for at least 330 full days during any 12-month period. Key points:
• Full days only: Any day you’re in the US doesn’t count, even partially
• Travel days: Days spent traveling to/from the US typically don’t count
• 12-month period: Can be any 12 consecutive months, not just the tax year
FEIE tax savings depend on your income level and filing status. Typical annual savings:
• $75,000 income: ~$12,000-15,000 federal tax savings
• $130,000 income: ~$25,000-30,000 federal tax savings
• $200,000+ income: ~$35,000-40,000+ federal tax savings
The choice between FEIE and Foreign Tax Credit (FTC) depends on your situation:
Choose FEIE when: You live in a low-tax country, earn under $130,000, or want to minimize complexity
Choose FTC when: You live in a high-tax country, earn significantly over $130,000, or have investment income
To claim FEIE, you need to file:
• Form 2555: Foreign Earned Income (the main FEIE form)
• Form 1040: U.S. Individual Income Tax Return
• Form 2555-EZ: (Discontinued. Use Form 2555 instead, even for simple cases)
How to Use the FEIE Calculator
Step-by-step guide to calculating your Foreign Earned Income Exclusion
FEIE Calculator Requirements & Limitations
- Earned Income Only: Calculator applies to wages, salaries, professional fees, and self-employment income – not passive income like dividends or interest
- Foreign Source Required: Income must be earned for services performed in a foreign country while maintaining a foreign tax home
- IRS Form 2555: You must file Form 2555 with your tax return to claim the exclusion – the FEIE is not automatic
- Tax Year 2025 Limits: Maximum exclusion of $130,000 per qualifying person, with housing exclusion up to $39,000 additional
- Professional Consultation: Complex situations may require professional tax advice for optimal Form 2555 preparation and compliance
Enter Basic Information
Select your tax year (2025), filing status, foreign earned income amount, and current country of residence. This provides the foundation for accurate FEIE exclusion calculations using current IRS limits and tax brackets.
Choose Qualification Method
Select either Physical Presence Test (330+ days outside US) or Bona Fide Residence Test (full tax year foreign resident). Include detailed tracking of US visits and residence establishment dates for complete FEIE requirements verification.
Add Housing Expenses
Calculate foreign housing exclusion benefits by entering qualified housing expenses. Assessment includes rent, utilities, insurance, and other IRS-approved housing costs for maximum tax optimization beyond the basic FEIE limit.
Review Complete Results
Get comprehensive results showing total foreign earned income exclusion amount, housing exclusion benefits, federal tax savings, and actionable recommendations for Form 2555 filing and tax compliance.
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This material is for informational purposes only and does not constitute investment, legal, or tax advice. Consult qualified professionals for guidance specific to your circumstances.