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FEIE Eligibility Guide

Before preparing Form 2555, you need to understand whether you may qualify for the Foreign Earned Income Exclusion.

FEIE Is Not Automatic

The Foreign Earned Income Exclusion is not automatic just because you live abroad. You generally need foreign earned income, a foreign tax home, and either the Physical Presence Test or the Bona Fide Residence Test.

This quick check can help you understand whether Form 2555 may be relevant to your situation.

FEIE Eligibility Check

Answer these questions to get a general sense of whether you may need to review Form 2555 more closely.

Do you have foreign earned income? Is your tax home outside the United States? Were you physically present in a foreign country for at least 330 full days during a 12-month period? Were you a bona fide resident of a foreign country for an uninterrupted period that includes an entire tax year?

Why This Step Comes First

FEIE eligibility affects whether you can use Form 2555 later in the filing process. That is why this step should come before calculating the exclusion itself.

If you qualify, Form 2555 may reduce regular U.S. income tax on qualifying foreign earned income. But FEIE does not solve every tax issue.

Important: FEIE Does Not Usually Remove Self-Employment Tax

If you are self-employed abroad, Form 2555 may reduce regular income tax, but it generally does not eliminate U.S. self-employment tax.

If you freelance, consult, run a small business, or receive contractor income abroad, review the self-employed expat pathway before assuming Form 2555 solves the whole tax problem.

What This Eligibility Check Does

This page is not a final tax determination. It is a screening step. Its job is to help you decide whether the FEIE path deserves a closer look.

If your answers suggest that FEIE may apply, your next step is to understand how Form 2555 works and whether FEIE is better for you than the Foreign Tax Credit.

What Should You Review Next?

If Form 2555 may apply, the next step is understanding how FEIE compares with the Foreign Tax Credit and how Form 2555 connects to the rest of your return.

Next Step: Compare FEIE and FTC

FEIE is only one possible way to reduce U.S. tax on foreign income. If you pay foreign income tax, the Foreign Tax Credit may also be important.

Compare FEIE vs FTC →

Disclaimer: This page is for general educational purposes only and is not legal, tax, or accounting advice. U.S. expat tax rules can change and individual facts matter. Review current IRS guidance or consult a qualified tax professional before filing.