// Educational planning tool

FEIE Planning Tool — see which levers actually save you money

The Foreign Earned Income Exclusion, foreign housing exclusion, and self-employment tax interact in ways that surprise most expats. Enter your numbers to see what helps you — and what's dead weight — at your income level. Updated with 2026 figures.

Your situation

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Wages or self-employment income for work performed abroad. Not dividends, interest, pensions, or rental income.
Self-employed income carries self-employment tax that the FEIE does NOT cover.
Rent + utilities (not phone/TV), insurance, repairs. Used to test the housing exclusion.
Rough residency check. The Physical Presence Test needs 330+ full days abroad in a 12-month period.
This tool models one earner. A working spouse abroad can claim a separate FEIE.
Enter your numbers and tap "Show me what saves money" to see how the FEIE, housing exclusion, and SE tax stack up — and which levers are worth pulling at your income level.

The three things most expats get wrong

01

Cheap housing = no housing benefit

The housing exclusion only counts costs ABOVE a base floor (~$21,264 in 2026). Spend less than that and your housing exclusion is exactly $0 — the benefit rewards high housing costs, not low ones.

02

FEIE doesn't touch SE tax

If you're self-employed, the ~15.3% self-employment tax is calculated BEFORE the exclusion. The FEIE can zero your income tax and you'll still owe SE tax. That's usually the real bill.

03

Deductions on excluded income do nothing

If the FEIE already zeroes your taxable income, stacking more deductions or a housing exclusion on top saves you nothing — you can't exclude income that's already excluded.

Monte Fisher, CPA Ret, CFE
Monte Fisher, CPA (Ret.), CFE US expat tax forensics · Makati, Philippines
Educational tool — not tax advice. This calculator is a simplified planning model for general education. It uses published 2025–2026 IRS figures and standard rules, but it does not account for every situation (state taxes, the Foreign Tax Credit, prorated days for mid-year moves, location-specific housing caps, treaty positions, or your full return). The housing cap shown is the general limit; high-cost locations like Manila have their own published limits. Self-employment tax estimates are simplified. Monte Fisher's CPA license is retired and inactive; this is not tax preparation or advice. Verify everything with current IRS guidance (Form 2555, Publication 54) and consult a qualified expat tax professional about your specific situation before making decisions.