What is the foreign earned income exclusion amount for 2025?
The 2025 foreign earned income exclusion is up to $130,000 per qualifying person, claimed on Form 2555. The individual must have a foreign tax home and satisfy either the physical presence test (330 full days in foreign countries during a 12-month period) or the bona fide residence test.
What it covers, and what it does not
The exclusion applies to earned income: salary, wages, self-employment income from services. It does not cover investment income, pensions or distributions, and it does not reduce self-employment tax. Married couples where both spouses qualify can each claim their own exclusion.
Use it by filing, not by default
The exclusion requires an election and is not automatic. Treasury regulations provide rules for making a late election, including conditions that vary with timing and IRS contact. Streamlined does not itself guarantee a valid FEIE election or a particular amount of tax due.
Reference information, not legal or tax advice. Figures come from our verified fact base and are checked against superseded values on every site update.