How to use this work-abroad estimate
Start with your full annual income, then enter either a direct foreign earned income amount or the foreign and total work-day allocation. Add foreign housing expenses only if they are qualified housing expenses, and add foreign taxes paid or accrued when you want the Foreign Tax Credit scenario to show the statutory credit limit.
Compare mode returns the FEIE and FTC paths as distinct scenarios. That matters because the Foreign Tax Credit cannot be claimed on the same income excluded by FEIE or the foreign housing exclusion. If you only want one method, switch the method field to FEIE only or FTC only.
Frequently asked questions
What are FEIE and FTC?
The Foreign Earned Income Exclusion can exclude qualifying foreign earned income from U.S. federal taxable income, while the Foreign Tax Credit can reduce U.S. tax for eligible foreign income taxes paid or accrued. This page keeps the methods separate.
Why does this calculator not model foreign country tax?
This phase is U.S.-side only. It models U.S. federal income tax relief from FEIE, foreign housing exclusion, and FTC, but it does not include foreign country tax tables or local payroll rules.
Why is this annual instead of per-paycheck?
FEIE, housing exclusion, and FTC are annual tax-return concepts. The estimator uses annual income and annual tax relief inputs, not employer paycheck withholding for each pay period.
How do the qualification tests work?
You must self-attest a foreign tax home and either meet the Physical Presence Test day count or the Bona Fide Residence Test. This page does not verify residency records, visas, travel logs, or immigration history.