FEIE
Business & Finance abbreviation · Tax
| Stands for | Foreign earned income exclusion |
|---|---|
| Categories | Business & Finance |
FEIE stands for Foreign earned income exclusion, a tax abbreviation.
Provision that lets US citizens and residents who live and work abroad exclude a large, inflation-adjusted amount of foreign earned income from US income tax. It is claimed on Form 2555 and requires passing either the bona fide residence test or the physical presence test.
Example: Thanks to the FEIE, my salary in Singapore is almost entirely free of US income tax.
Usage notes
The physical presence test requires 330 full days outside the US in any 12-month period. The exclusion does not reduce self-employment tax, and excluded income still pushes remaining income into higher brackets. Expats in high-tax countries often prefer the foreign tax credit. The US is one of very few countries that taxes citizens on worldwide income wherever they live.
Related abbreviations
More tax abbreviations
- EFTPS – Electronic Federal Tax Payment System
- EIN – Employer Identification Number
- EITC – Earned Income Tax Credit
- ETR – Effective tax rate
- FATCA – Foreign Account Tax Compliance Act
- FBAR – Report of Foreign Bank and Financial Accounts (FinCEN Form 114)
- FICA – Federal Insurance Contributions Act tax
- FIT – Federal income tax
- FTC – Foreign tax credit
- FUTA – Federal Unemployment Tax Act tax
- GST – Goods and services tax
- GSTIN – Goods and Services Tax Identification Number