US 2028 Foreign Tax Credit vs FEIE

2028 FTC vs FEIE: FTC dollar-for-dollar credit for foreign tax paid. FEIE excludes up to $130k. FTC wins in UK/Germany (high tax); FEIE in UAE/Singapore.

Foreign earned income ($)

Foreign tax paid ($)

Your US tax rate %

Winner

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Savings

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FEIE total US tax	—
FTC total US tax	—
Better choice 2028	—
Savings vs other	—

US expats 2028 — Foreign Tax Credit (FTC, Form 1116) vs Foreign Earned Income Exclusion (FEIE, Form 2555): FTC = dollar-for-dollar credit for foreign tax paid. FEIE = exclude up to $130,000 from US tax (must qualify via 330 days abroad or bona fide residence). High-tax countries (UK, Germany, France): FTC wins. Low-tax countries (UAE, Singapore, Hong Kong): FEIE wins.

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Last updated May 2026. Sources: IRS Foreign Tax.