2028 FEIE
2028 FEIE projected $130,000 per qualifying expat. Plus housing exclusion up to ~$19,500 base (location-adjusted). Form 2555 required.
| FEIE max 2028 | — |
| Housing exclusion base | — |
| Housing exclusion claimed | — |
| Total excluded | — |
| Remaining US-taxable | — |
The 2028 Foreign Earned Income Exclusion is projected at $130,000 per qualifying US expat (up from $126,500 in 2026). Plus housing exclusion ~$20,800 base / $39,000 cap. Qualify via Physical Presence (330+ days abroad in 12 months) or Bona Fide Residence (full tax-year resident).
FEIE Mechanics
Exclude up to $130,000 (2028 projected) of foreign earned wages or self-employment income from US tax. File Form 2555 with Form 1040. US citizens and resident aliens qualify. Excludes US-source income, passive income, pensions, IRA distributions.
Qualifying Tests
Physical Presence Test: 330 full days in foreign country within any 12-month period. Bona Fide Residence Test: residence in foreign country full tax year + 'tax home' there + no intent to return immediately. BFR more flexible for tied-down expats; PPT objective.
Housing Exclusion
Foreign housing costs above 16% of FEIE base (~$20,800 in 2028) up to 30% cap (~$39,000) excluded. Higher caps for high-cost locations (London, Tokyo, Singapore). Self-employed get housing deduction instead.
FEIE vs FTC
Foreign Tax Credit: deduct foreign income tax paid. Often better for high-tax countries (UK, Germany). FEIE often better for low-tax countries (UAE, Singapore for some categories). Cannot combine on same dollars. Choose annually — can revoke FEIE but 5-year wait to re-elect.
Last updated May 2026. Sources: IRS FEIE.