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Index/Topics/Foreign Earned Income

Foreign Earned Income

The documentation and calculation of foreign earned income for MAGI purposes

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Jan 22, 2026

How do the foreign earned income exclusion and foreign tax credit work for 2025 filings?

The Foreign Earned Income Exclusion () lets qualifying taxpayers exclude up to $130,000 of foreign-earned income for the by filing Form 2555, subject to residency or physical-presence tests and prorat...

Jan 21, 2026

What documentation should taxpayers keep to prove non‑taxable income and MAGI calculations?

Modified adjusted gross income () starts with the AGI on Form 1040 and then adds back specific nontaxable items — chiefly untaxed foreign income, non‑taxable Social Security benefits and tax‑exempt in...