Using the FEIE Calculator: Estimate Exclusion Eligibility
Use our free FEIE calculator to see how much the Foreign Earned Income Exclusion could save you. Step-by-step guide with examples for 2025 and 2026 tax years.
The Foreign Earned Income Exclusion (FEIE) is one of the most powerful tax benefits available to Americans abroad. But how much will it actually save you?
Use the FEIE calculator to find out in under 60 seconds.
What the FEIE Calculator Shows You
Enter your foreign earned income and filing status, and the calculator estimates:
- Your excludable income — up to $130,000 (2025) or $132,900 (2026)
- Your estimated tax savings — the federal income tax you avoid by claiming the exclusion
- Your remaining taxable income — any income above the exclusion limit
Quick Examples
Example 1: Salaried Employee Abroad
- Foreign earned income: $95,000
- Filing status: Single
- FEIE exclusion: $95,000 (full amount — below the limit)
- Estimated savings: ~$14,000 in federal income tax
Example 2: High Earner Abroad
- Foreign earned income: $180,000
- Filing status: Single
- FEIE exclusion: $130,000 (2025 limit)
- Remaining taxable income: $50,000
- Estimated savings: ~$24,000 (but you still owe tax on the $50,000 above the limit)
For income above the exclusion, the Foreign Tax Credit may help offset additional US tax — especially if you're paying taxes in a high-tax country.
Example 3: Married Couple Both Working Abroad
- Combined foreign earned income: $200,000 ($120,000 + $80,000)
- Each spouse claims the FEIE on their own income
- Total excluded: $200,000 (both are below the individual limit)
- Estimated savings: ~$30,000+
Both spouses must independently qualify for the FEIE by meeting either the Physical Presence Test or the Bona Fide Residence Test.
What the FEIE Does NOT Cover
The exclusion has limits. It does not apply to:
- Investment income — dividends, capital gains, interest, rental income
- Pension and retirement distributions — 401(k), IRA, Social Security
- Self-employment tax — Social Security and Medicare taxes still apply
- Income above the exclusion limit — taxed at your normal marginal rate
For investment income, consider the Foreign Tax Credit. For retirement income in Ecuador, see my guide to Ecuador's territorial tax system.
Do You Qualify?
You must meet one of two tests:
Physical Presence Test: You were physically present outside the US for at least 330 full days during any 12-month period. Days don't have to be consecutive. Partial days in the US count as US days.
Bona Fide Residence Test: You established genuine residence in a foreign country for an entire tax year. You'll need proof: a lease, local ID, utility bills, visa documentation.
Either test works — you don't need both. Read the complete FEIE guide for detailed eligibility rules.
FEIE vs. Foreign Tax Credit: Which Is Better?
It depends on your situation:
| Scenario | Best Choice |
|---|---|
| Low-tax or no-tax country | FEIE (no foreign taxes to credit) |
| High-tax country (UK, Germany, Japan) | FTC (credit may exceed FEIE savings) |
| Income under $130,000 | FEIE (full exclusion, simple) |
| Income well over $130,000 | FTC or both |
| Self-employed with high SE tax | FTC (doesn't help with SE tax, but neither does FEIE) |
Not sure? Use the FEIE calculator first, then try the Tax Savings Estimator to compare FEIE vs FTC side by side.
Ready to Claim the FEIE?
The FEIE requires Form 2555 filed with your tax return. It's one of the most commonly mishandled forms in expat tax filing — small errors can cost thousands.
If you'd like help claiming the exclusion correctly, reach out for an intake form.
Related:
- FEIE Calculator
- FEIE 2026: Limit, Eligibility & How to Claim
- FEIE vs. Foreign Tax Credit: Which Saves More?
- Complete FEIE Guide
Official IRS sources
Still unsure about your filing situation?
If this article raised more questions than it answered, that is normal.
Tax rules depend on your exact facts: your country, your income, your accounts, your filing history. I review every intake personally and reply within one business day. If FileAbroad can accept the work, we schedule a paid consultation and you receive a written scope before any preparation begins.
No tax documents here — just the broad facts.
Frequently Asked Questions
How much can the FEIE save me?
The FEIE can save you up to $33,000+ per year in federal income taxes, depending on your income and filing status. For 2025, you can exclude up to $130,000 of foreign earned income. For 2026, the limit rises to $132,900.
Does the FEIE calculator account for self-employment tax?
The FEIE only excludes income from federal income tax. It does not reduce self-employment tax (Social Security and Medicare). Self-employed expats still owe SE tax on net earnings above $400, though a totalization agreement with your country may provide an exemption.
Can I use the FEIE if I work remotely for a US company?
Yes, if you meet either the Physical Presence Test (330 days outside the US in a 12-month period) or the Bona Fide Residence Test (established residence in a foreign country for a full tax year). Where your employer is based doesn't matter — what matters is where you perform the work.
What is the FEIE exclusion limit for 2026?
The FEIE exclusion limit for tax year 2026 is $132,900, up from $130,000 for tax year 2025. The limit is adjusted annually for inflation.
Continue with a guide
Guide
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About the Author
Chip Moreno is an American expat and PTIN holder based in Cuenca, Ecuador. He files his own FBAR and US return from Ecuador every year. Most expat tax firms are call centers in Ohio — Chip does the opposite: you work directly with him from first review to filing. Every engagement starts with a paid consultation or reach out here.