US Expat Tax 2026 FEIE Guide

Understanding the Foreign Earned Income Exclusion (FEIE)

For US citizens living abroad, the 2026 FEIE limit has increased to adjust for inflation. This allows you to exclude over $120,000 of foreign-earned income from US federal taxes.

Key Requirements

1. **Physical Presence Test**: You must be outside the US for 330 days in a 12-month period.
2. **Bona Fide Residence Test**: legitimate residency in a foreign country.

European Considerations

If you reside in high-tax countries like the UK, Germany, or France, the **Foreign Tax Credit (FTC)** might be more beneficial than the FEIE.

Check your eligibility with our Nomad Tax Tool.

Important Disclaimer

This article is for informational and educational purposes only and should not be construed as financial, investment, tax, or legal advice. Financial markets and regulations are subject to change, and individual circumstances vary. Always consult with qualified professionals before making financial decisions. Past performance does not guarantee future results.

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