Foreign Earned Income Exclusion

The Foreign Earned Income Exclusion (FEIE) allows U.S. citizens or residents working abroad to exclude a certain amount of their earned income from U.S. taxation each year. For 2023, this amount is up to $120,000. To qualify, you must meet specific physical presence or bona fide residence tests, demonstrating that you genuinely reside and work outside the U.S. for the required time. This exclusion helps prevent double taxation on income earned abroad, though other income and deductions still apply. It’s a valuable tax benefit for Americans living and working overseas.