Expat & Global
Compare the Foreign Earned Income Exclusion and Foreign Tax Credit methods to find which one saves more on US expat taxes given your country and income.
FEIE saves more. Excluding foreign earned income produces lower US tax liability.
Savings: $4,000.00
FEIE benefit vs FTC benefit
Contract, discovery endpoints, and developer notes for agent use.
Always available for agents
Tool contract JSON
https://aifinhub.io/agent-tools.jsonSee the site-wide tool index for this tool's entry and schema.
Human review
People can use the browser page to sense-check outputs and charts, but agents should still execute against the contract and discovery endpoints.
{
"tool": "feie_vs_ftc",
"foreign_income": 100000,
"us_bracket_percent": 22,
"foreign_taxes_paid": 18000,
"housing_costs": 24000
} No. Start with /agent-tools.json, then follow the tool's contract URL. The page UI is for human review, not parameter discovery.
Every tool opens in Quick Start first. Advanced Controls keeps the same scenario, reveals more assumptions or diagnostics, and every tool keeps AI integrations inline below the instructions.
Open it when a human wants to sense-check the output, review the chart, or keep exploring related tools after the calculation finishes.
The Foreign Earned Income Exclusion (Form 2555) lets qualifying US expats exclude up to $126,500 (2024) of foreign earned income from US taxation. You must pass either the Physical Presence Test (330 days abroad) or the Bona Fide Residence Test.
The FTC (Form 1116) gives you a dollar-for-dollar credit against US taxes for income taxes paid to a foreign country. Unlike FEIE, it works for all income types including investment income, and has no exclusion cap.
FEIE is typically better when you live in a low-tax or no-tax country (UAE, Singapore, Panama) where foreign taxes paid are minimal. It excludes income entirely rather than crediting foreign taxes.
FTC is typically better when you live in a high-tax country (most of Western Europe, Scandinavia) where foreign taxes exceed US taxes on the same income. The credit can offset your entire US liability and excess credits carry forward.
You cannot use both on the same income. You can use FEIE on earned income and FTC on investment income, but you cannot double-dip. Once you revoke FEIE, you must wait 5 years to re-elect it.
No. This provides simplified estimates for planning purposes. US expat taxation is complex and involves state taxes, self-employment tax, FBAR/FATCA reporting, and treaty provisions. Always work with a qualified expat tax professional.
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