2019 Foreign Earned Income Exclusion
The 2019 Foreign Earned Income Exclusion is $105,900.
Effective 2019-01-01Source: Rev. Proc. 2018-57 (IRS)Verified 2026-08-29
Compared with 2018
| Item | 2018 | 2019 | Change |
|---|---|---|---|
| Exclusion amount | $103,900 | $105,900 | +$2,000 (+1.9%) |
Who it applies to
U.S. citizens and resident aliens who live and work abroad and qualify for the foreign earned income exclusion under IRC § 911
What changed this year, and why
The foreign earned income exclusion amount was adjusted for inflation to $105,900 for taxable years beginning in 2019, up from $103,900 in 2018.
Common questions
- What is the foreign earned income exclusion amount for 2019?
- The maximum foreign earned income exclusion for 2019 is $105,900.
Your tax home has to be in a foreign country
To claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction, you must have a tax home in a foreign country throughout the entire period you use to qualify - either the period of bona fide residence or the period of physical presence abroad. Your tax home is the general area of your main place of business, employment, or post of duty, regardless of where your family actually lives. It does not matter whether that location is also your legal residence or domicile. If your tax home is not in a foreign country for the full qualifying period, you cannot use either test to exclude foreign earnings. This rule applies to U.S. citizens and resident aliens who perform personal services abroad and must be satisfied in addition to the income and presence requirements.
To qualify for the foreign earned income exclu- sion, the foreign housing exclusion, or the for- eign housing deduction, your tax home must be in a foreign country throughout your period of bona fide residence or physical presence abroad.
Publication 54 (2019), Tax Guide for U.S. Citizens and Resident Aliens Abroad (IRS)
The bona fide residence test
You meet the bona fide residence test if you are a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year. The residence must be continuous; a break in status during the year disqualifies you for that year. Only U.S. citizens, or U.S. resident aliens who are citizens or nationals of a treaty country, can use this test. You do not gain bona fide resident status automatically just by living abroad - the facts of your life, your intentions, and your ties to the foreign country are all considered. If you satisfy this test and also have a tax home in that foreign country, you may exclude up to $105,900 of foreign earned income for 2019.
You meet the bona fide residence test if you are a bona fide resident of a foreign country or countries for an uninterrupted period that in- cludes an entire tax year.
Publication 54 (2019), Tax Guide for U.S. Citizens and Resident Aliens Abroad (IRS)
330 full days in any 12 months
To meet the physical presence test, you must be physically present in a foreign country or countries for at least 330 full days during a 12-month period. The 330 days do not need to be consecutive, and you may count any days spent abroad for any reason - work, vacation, or family. Unlike the bona fide residence test, this test does not depend on the kind of residence you establish, your intentions, or the purpose of your stay. Any U.S. citizen or resident alien can use it. You must also have a tax home in a foreign country throughout the period. If you qualify, you may exclude up to $105,900 of foreign earned income for 2019.
Generally, to meet the physical presence test, you must be physically present in a foreign country or countries for at least 330 full days during a 12-month period.
Publication 54 (2019), Tax Guide for U.S. Citizens and Resident Aliens Abroad (IRS)
The separate foreign housing exclusion
In addition to the foreign earned income exclusion, qualifying taxpayers may either deduct part of their housing expenses from income or treat a limited amount of income used for housing expenses as not taxable by the United States. These benefits are called the foreign earned income exclusion and the foreign housing deduction and exclusion. The housing exclusion is available to employees, while the housing deduction is available to the self-employed. To qualify for either benefit, you must have a tax home in a foreign country and earn income from personal services performed in a foreign country. The same tests that qualify you for the earned income exclusion - bona fide residence or physical presence - also apply here. For 2019, the maximum foreign earned income exclusion is $105,900, and the housing benefit is calculated as a percentage of that amount on a daily basis.
You may also be able to either deduct part of your housing expenses from your in- come or treat a limited amount of income used for housing expenses as not taxable by the Uni- ted States.
Publication 54 (2019), Tax Guide for U.S. Citizens and Resident Aliens Abroad (IRS)
The election sticks until you revoke it
The foreign earned income exclusion is voluntary and is elected by completing the appropriate parts of Form 2555. Once you choose to exclude your foreign earned income, that choice remains in effect for that year and all later years unless you revoke it. If you later revoke the election, you cannot claim the exclusion again for a number of tax years without approval from the IRS. Your initial choice must be made with a timely filed return or a return amending a timely filed return. Once the election is in place, you also cannot take a foreign tax credit or deduction for taxes on income you can exclude. If you do take a credit or deduction for any of those taxes in a later year, your election for the foreign earned income exclusion will be revoked beginning with that year.
Once you choose to exclude your foreign earned income, that choice remains in effect for that year and all later years unless you revoke it.
Publication 54 (2019), Tax Guide for U.S. Citizens and Resident Aliens Abroad (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Rev. Proc. 2018-57 (IRS)
- Exclusion amount
.39 Foreign Earned Income Exclusion. For taxable years beginning in 2019, the foreign earned income exclusion amount under § 911(b)(2)(D)(i) is $105,900.