2019 Foreign Earned Income Exclusion

2019 foreign earned income exclusion. The foreign earned income exclusion allows expats to exclude the first around 100 000 of their income from us taxation. The maximum foreign earned income exclusion amount is adjusted annually for inflation. For tax year 2020 the maximum exclusion is 107 600 per person. The foreign earned income exclusion 2020 maximum amount has risen to 107 600.

The amount of exclusion that a taxpayer is entitled to is equal to the lesser of foreign earned income for the year or the maximum exclusion divided by the total number of days 365 or 366 in the year times the number of qualifying days. The 2019 foreign earned income exclusion. For tax year 2019 the maximum foreign earned income exclusion is the lesser of the foreign income earned or 105 900 per qualifying person. Foreign earned income exclusion.

Each year the irs adjusts the maximum amount of the feie to account for inflation. The exclusion is still the best known although sometimes misunderstood tax benefit available exclusively to u s. If you meet certain requirements you may qualify for the foreign earned income exclusion the foreign housing exclusion and or the foreign housing deduction to claim these benefits you must have foreign earned income your tax home must be in a foreign country and you must be one of the following. For the 2019 tax year the limit is 105 900.

Foreign earned income exclusion 2019 2020 updates.