Income Earned Abroad

Working abroad does not relieve citizens of their obligation to file U.S. tax returns and pay taxes here. But to make things easier for those working overseas, the tax law lets a limited amount of income be received tax free each year as long as certain conditions are met.

If you live and work abroad, you are not taxed on up to $91,400 of foreign earned income. If you are married and both you and your spouse have foreign income, you may each be eligible for an exclusion. If your foreign earned income is more than $91,400, you are taxable only on amounts in excess of $91,400.

This exclusion is not automatic; you must elect it.