What is the foreign earned income (FEI) exclusion?
Central to the tax rules for certain filers of US tax returns who live and work abroad is the ability to exclude up to $91,400 of earned income annually. Earned income that may be excluded means wages, salaries, professional fees, and other compensation received for personal services performed in a foreign country. It does not include pensions, annuities, social security, interest, dividends, capital gains, or alimony. The exclusion is available to both spouses on a joint return assuming both persons meet the qualifications. More details are available on the FEI information page.
