Tax Filing for International School Teachers Abroad
Teaching abroad comes with unique tax questions. FileAbroad helps international school teachers navigate FEIE, foreign housing, state tax, and pension reporting.
Common Challenges
You are unsure whether your teaching income qualifies for the FEIE.
You receive housing from your school and are unsure how to report it.
You have a teacher pension from your host country and are unsure about US reporting.
You are unsure whether you can contribute to a US retirement account from abroad.
You need to file state taxes but are unsure which state is your domicile.
How FileAbroad Helps
Determine FEIE eligibility based on your contract length and residence status.
Calculate the foreign housing exclusion or deduction for employer-provided housing.
Advise on pension reporting and treaty benefits for teacher pensions.
Optimize IRA contribution eligibility and retirement planning.
Provide a written scope and exact quote before any work begins.
Resources for International School Teachers
Pricing
Teacher returns are often straightforward but may include foreign housing and pension complexity. Straightforward annual returns start at $575. Cases with foreign pensions, treaty positions, or multi-year catch-up receive a custom quote.
Frequently Asked Questions
Does teaching income qualify for the FEIE?
Yes, if you meet the Physical Presence Test or Bona Fide Residence Test. Teaching income is earned income and qualifies for the FEIE. Many teachers on multi-year contracts can establish bona fide residence, while those on shorter contracts may use the Physical Presence Test.
How is employer-provided housing taxed?
If your school provides housing, the fair market value of the housing is generally taxable income. However, the Foreign Housing Exclusion (Form 2555) may exclude a portion of the housing cost if you qualify for the FEIE. The exclusion is limited to 30% of the FEIE limit ($39,870 for 2025) minus a base amount ($20,240).
Are teacher pensions from abroad taxable in the US?
Generally yes, unless a tax treaty exempts them. Many US tax treaties have provisions for government service pensions or teacher pensions. For example, the US-UK treaty generally exempts UK teacher pensions from US tax if the recipient is a UK resident. Each treaty is different and requires individual analysis.
Can I contribute to a 403(b) or IRA while teaching abroad?
You can contribute to an IRA if you have taxable compensation. However, if you exclude all your income under the FEIE, you may not have enough taxable compensation to support a contribution. Many teachers use the Foreign Tax Credit instead of the FEIE to preserve IRA contribution eligibility.
Do teachers get any special tax treaty benefits?
Yes. Many US tax treaties have specific articles for teachers and researchers that exempt teaching income from host-country tax for a limited period (typically 2 years). This does not exempt the income from US tax, but it may reduce or eliminate foreign tax, making the FEIE or FTC more valuable.
Questions About International School Teachers Taxes?
Every situation is different. The fastest way to clarity is the free intake.