$0 Federal Income Tax: Foreign Earned Income Exclusion (FEIE) Guide for US Taxpayers

The Foreign Earned Income Exclusion (FEIE) allows U.S. citizens and residents living and working abroad to exclude a certain amount of their foreign-earned income from U.S. federal income taxes.

The exclusion amount is adjusted annually by the IRS for inflation. For tax year 2024, the exclusion is set at $126,500. It will rise to $130,000 for 2025.

To qualify for the Foreign Earned Income Exclusion (FEIE), the IRS requires you to meet either the Bona Fide Residence Test or the Physical Presence Test.

Combined with our popular Savvy Nomad domicile service, this tax provision allows many digital nomads and expats to reduce their federal income tax burden to zero.

Learn more about our service and get 15% off with promo code YOUTUBE:

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Join our Americans Abroad newsletter to stay informed about visas, taxes, residency, and cost of living:

https://americansabroad.beehiiv.com/

Use our free physical presence test calculator for the FEIE:

https://savvynomad.io/feie-calculator

Check out more useful articles on the Savvy Nomad blog:

Foreign Earned Income Exclusion in 2025: IRS Form 2555
https://blog.savvynomad.io/foreign-ea...

U.S. tax guide for American nomads
https://blog.savvynomad.io/us-digital...

Foreign Tax Credit (FTC): IRS Form 1116
https://blog.savvynomad.io/foreign-ta...

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Disclaimer: this video is not tax or financial advice, and you should always consult an expert regarding your circumstances.