What is FEIE (Foreign Earned Income Exclusion)?
A U.S. tax provision letting qualifying Americans abroad exclude a capped amount of foreign earned income from U.S. federal income tax.
Also searched as: foreign earned income exclusion, form 2555.
U.S. citizens and green-card holders are taxed on worldwide income no matter where they live. The FEIE (claimed on Form 2555) lets those who meet the bona fide residence or physical presence test exclude foreign earned income up to an annually adjusted limit.
It applies to earned income (wages, self-employment), not passive income, and it does not remove the requirement to file a U.S. return. It is often combined with the Foreign Tax Credit.
Official source: IRS — Foreign Earned Income Exclusion.
Reviewed July 2026. General information, not legal, tax or immigration advice — always verify current official requirements.
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