How Expats Can Save Up to $126,500 on US Taxes in 2025
Living abroad comes with many benefits, including potential tax savings. US expats can legally reduce or eliminate their US tax obligations through exclusions and credits, such as the Foreign Earned Income Exclusion (FEIE) and the Foreign Tax Credit (FTC).
How the Foreign Earned Income Exclusion (FEIE) Works
For 2025, US expats who qualify for the FEIE can exclude up to $126,500 of foreign-earned income from their taxable income. To qualify, expats must meet one of the following tests:
- Physical Presence Test: Must reside outside the US for at least 330 days in a 12-month period.
- Bona Fide Residence Test: Must be a tax resident of another country for a full calendar year.
Additional Ways Expats Can Lower Their US Tax Bill
- Foreign Tax Credit (FTC): Reduces US taxes dollar-for-dollar for income taxes paid to another country.
- Foreign Housing Exclusion: Allows additional deductions for housing costs while living abroad.
Navigating these tax benefits can be complex, but expert guidance ensures you maximize your savings while staying compliant.
👉 Find out if you qualify for the FEIE and other expat tax benefits! Call (877) 382-9123 or visit www.ExpatriateTaxReturns.com.
