Foreign Earned Income Exclusion vs. Foreign Tax Credit for Remote Tech Workers
Foreign Earned Income Exclusion vs. Foreign Tax Credit for Remote Tech Workers 📌 Table of Contents Remote Work and U.S. Tax Obligations What Is the Foreign Earned Income Exclusion (FEIE)? What Is the Foreign Tax Credit (FTC)? FEIE vs. FTC: Key Differences Can You Use Both Together? Conclusion Remote Work and U.S. Tax Obligations Even if you’re working remotely from Bali, Berlin, or Bogotá—if you're a U.S. citizen or green card holder, you're still required to file a U.S. tax return. Thankfully, the IRS offers two powerful tools to prevent double taxation: the **Foreign Earned Income Exclusion (FEIE)** and the **Foreign Tax Credit (FTC).** Each has unique benefits—and choosing the right one can save you thousands. What Is the Foreign Earned Income Exclusion (FEIE)? FEIE allows qualifying expats to exclude up to **$120,000** of foreign earned income (as of 2023) from U.S. taxes. To qualify, you must meet either the **Bona Fide Residence Tes...