If you're a US citizen and spend significant time abroad, you can save up to $126,500 per person on your federal income taxes. Do you qualify? This is a physical presence test calculator for the US foreign earned income tax exclusion.
To qualify for the Foreign Earned Income Exclusion (FEIE) and save up to $126,500 on your U.S. federal taxes (2024 limit), you typically need to meet the Physical Presence Test (PPT). Here’s what that means in plain English:
1. Spend 330 Full Days Abroad
• A full day means 24 straight hours from midnight to midnight.
• Travel over international waters or airspace doesn’t count as time abroad.
• Any day spent fully abroad counts, whether you’re working, vacationing, or just relaxing.
• Special exceptions apply if you must leave due to war or civil unrest.
Example:
• Fly from NYC to Paris, departing June 10, arriving June 11 at 9:00 a.m. Your first full day abroad starts June 12.
2. Pick the Best 12-Month Window
• You can start the 12-month window on any day, and it ends exactly one year later (the day before that same date).
• These windows can overlap—allowing flexibility in maximizing days abroad.
Example:
• Working in New Zealand from Jan 1, 2025, through Aug 31, 2026, with brief U.S. visits each year.
To ensure you meet the requirement, you can overlap two periods (e.g., Jan 2025–Dec 2025 and Sep 2025–Aug 2026).
3. How Our Calculator Helps
Simply enter your travel dates, and the calculator automatically:
• Identifies all potential 12-month periods.
• Counts eligible full days abroad.
• Provides a clear, instant result so you can adjust travel plans if needed.
4. Important Reminders from IRS Publication 54
• Intent or purpose of stay abroad does not matter.
• Short travel under 24 hours between countries doesn’t cost days.
• Longer trips (over 24 hours) across international waters may cost multiple days.
• U.S. airport transit under 24 hours between two foreign locations doesn’t count as a U.S. presence.
Our tool simplifies the complex rules, so you can quickly determine your FEIE eligibility—letting you save money and focus on your global adventures.