Foreign Earned Income Exclusion: 330-Day Tracker and Decision Guide
Track qualifying foreign days, tax home, earned income, housing, employer location, self-employment tax, and foreign tax credits before relying on the exclusion.
The practical answer
Track qualifying foreign days, tax home, earned income, housing, employer location, self-employment tax, and foreign tax credits before relying on the exclusion. Confirm the facts and evidence first, apply the relevant rule second, and document the decision and follow-through.
Decisions to organize
Use these decision points to turn the topic into verifiable actions.
- Count full foreign days in a rolling 12-month period
- Confirm the income is earned from services performed abroad
- Compare exclusion limits, housing rules, foreign tax credits, and self-employment-tax consequences
Evidence checklist
- Day-count calendar, passport records, travel itinerary, and foreign housing lease
- Pay statements, contracts, invoices, and service-location logs
- Foreign tax returns, tax payment proof, and employer housing records
Forms and deadlines
- File Form 2555 only when the current eligibility tests are met
- Use an extension when additional days are needed to establish eligibility
- Do not assume the exclusion eliminates state, payroll, or self-employment taxes
Issues to flag for review
- Treating a visa, citizenship, or company formation as the tax-residency answer
- Assuming company ownership creates work authorization
- Missing worldwide-income, FBAR, Form 8938, or foreign tax-credit reporting
- Using a generic day count without testing visa exceptions and state domicile
- Treating tax advice as immigration advice or vice versa
Frequently asked questions
What should I review before acting?
Track qualifying foreign days, tax home, earned income, housing, employer location, self-employment tax, and foreign tax credits before relying on the exclusion.
When should professional review be added?
Add review when facts, forms, deadlines, elections, or consequences remain uncertain.
Sources and important note
General educational material based on the official sources below. Confirm tax-year facts and your individual circumstances before filing or acting.
Turn the guide into a plan.
Bring the records, questions, and deadlines that apply.