FEIE basics: the exclusion that gets most expats to zero.
The Foreign Earned Income Exclusion is why “Americans abroad still file taxes” usually ends with “…but owe nothing.” Here's how it works, who qualifies, and where nomads trip on the day count.
Checked 12 September 2026 against IRS guidance · Informational only — not tax, legal, or immigration advice
What it is
“Earned” is the operative word: salary, self-employment and freelance income count. Dividends, interest, capital gains, rent and pensions don't — the FEIE won't shelter those. And the exclusion isn't automatic: you claim it on Form 2555 with your return, which is one more reason the return itself still matters even at $0 owed.
The two ways to qualify
1. The physical presence test — the nomad route
Be physically present in foreign countries for 330 full days in any 12-month period. A “full day” is a complete midnight-to-midnight day outside the US — travel days that touch US soil don't count. The 12-month window doesn't have to match the calendar year: it slides to wherever your 330 days actually fall.
2. The bona fide residence test — the settled-expat route
Be a genuine resident of another country for an uninterrupted period covering a full tax year — shown by things like a residence visa, a local home, local filings, family and work ties. Harder to claim as a perpetual traveller; natural if you've actually moved somewhere.
Where nomads get burned
- Counting travel days as foreign days. The day you fly through Miami is a US day. 330 leaves only ~35 US days a year — a summer visit plus a wedding can quietly break the test.
- Assuming FEIE covers self-employment tax. It excludes income tax, not the 15.3% self-employment tax — a separate line freelancers still owe.
- Skipping the return entirely. The exclusion exists only if you claim it. No Form 2555, no FEIE.
- Ignoring the alternative. In high-tax countries the Foreign Tax Credit can beat the FEIE. Which wins is a real planning question — and a good one for a professional.
The day count is the whole game — which is what the FEIE Qualifier Tool in the US toolkit is for: log travel days as they happen and keep the record the exclusion asks for. It organises your evidence; it computes nobody's tax.
Informational only — not tax, legal, or immigration advice. General rules as checked on the date above; deadlines can shift and individual circumstances differ. Verify against IRS.gov or ask a qualified professional before acting.
The day count is the whole game.
The free cheat sheet has every US deadline on one page — and the toolkit's day tracker keeps your 330 provable.
One email when a deadline is close, one when a new guide ships. Nothing else.
Keep going
- The US deadline dashboard — payment, filing and FBAR dates in one place.
- The FBAR deadline, explained — the other form expats miss.
- The Schengen 90/180 rule — the other day count nomads juggle.