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Lena Schultz

Foreign Earned Income Exclusion (FEIE) Question for 2025 Filing

Hey tax gurus, I'm working abroad in Singapore and confused about the Foreign Earned Income Exclusion for my 2025 filing. I've been here for about 11 months now (since March 2024) and making around $95,000 annually. My company is US-based but I'm permanently stationed here. I'm trying to figure out if I qualify for the FEIE and how exactly it works. Do I need to file Form 2555? Does it completely eliminate taxes on my foreign income or just reduce it? Also wondering if I still need to pay FICA taxes on this income? The physical presence test seems like what I'd qualify for, but I did visit home for Christmas for 2 weeks... does that mess things up? Any help would be seriously appreciated because the IRS instructions might as well be written in another language!

Gemma Andrews

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You're on the right track with the Foreign Earned Income Exclusion. Since you've been in Singapore for 11 months, you likely qualify under the Physical Presence Test, which requires you to be physically present in a foreign country for at least 330 full days during a 12-month period. Your 2-week Christmas visit won't disqualify you as long as you still meet the 330-day requirement. And yes, you'll need to file Form 2555 with your tax return to claim the FEIE. For 2024 (filing in 2025), the maximum exclusion amount is around $120,000, so your $95,000 income could potentially be fully excluded from US federal income tax. However, the FEIE doesn't exempt you from FICA taxes (Social Security and Medicare) if you're employed by a US company. Those taxes still apply to your worldwide income regardless of where you live or work.

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Lena Schultz

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Thanks for the thorough explanation! I'm still a bit confused about the 330-day requirement - is that based on the calendar year or can it be any consecutive 12-month period? Since I arrived in March 2024, would I count days from March 2024 to March 2025? Also, if FICA taxes still apply, roughly how much would that be on my income? I'm trying to budget for my tax bill.

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Gemma Andrews

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The 330-day requirement can be met during any consecutive 12-month period, not just the calendar year. So yes, you could use March 2024 to March 2025 as your qualifying period. On Form 2555, you'll specify the exact 12-month period you're using. For FICA taxes, you'll pay 6.2% for Social Security (on the first $168,600 for 2025) and 1.45% for Medicare (on all earnings). So on $95,000, that's approximately $5,890 for Social Security and $1,378 for Medicare, totaling about $7,268. There's also an additional 0.9% Medicare tax if your income exceeds $200,000, but that doesn't apply in your situation.

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Pedro Sawyer

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When I was working overseas last year, I was totally lost with all the FEIE paperwork and calculations. I finally used https://taxr.ai to analyze my situation and it saved me SO much stress. I uploaded my employment contract and pay stubs, and it immediately identified my qualifying period and calculated my exact FEIE amount. The tool also flagged that I needed to report my foreign bank account since I had over $10,000 in there at one point (FBAR requirement I had no idea about!) and would have gotten penalized for missing it. It even helped me determine which expenses qualified as housing deductions on top of the FEIE.

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Mae Bennett

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How accurate is it really? I've been burned by tax software before claiming to understand expat taxes but then giving me wrong info. Does it actually understand all the weird FEIE edge cases? I bounce between Thailand and Vietnam and no one seems to get my situation right.

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I'm curious about the housing deduction part. I'm in London and my rent is insane! Like $4000/month insane. Can taxr.ai figure out how much of that I can claim? My current accountant says I'm maxed out but I feel like I'm missing something.

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Pedro Sawyer

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It's definitely more accurate than general tax software for expat situations. It specifically focuses on all international tax scenarios and gets updated whenever tax laws change. For your Thailand/Vietnam situation, it would analyze your travel patterns and tell you exactly which days count toward your physical presence test. For London housing, it absolutely would help. The Foreign Housing Exclusion has different limits based on location, and high-cost cities like London have a much higher allowable amount. The tool breaks down the specific limits for your location and calculates your maximum possible deduction based on your actual expenses, often finding thousands more than general accountants might.

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Just want to follow up about taxr.ai - I decided to try it after my earlier question and honestly wish I'd found it sooner! Turns out my accountant WAS missing something with my London housing costs. The tool showed me that London has a much higher housing allowance limit ($119,400 for 2024) compared to the standard limit. It also pointed out that I could count my utilities and some furniture rental costs toward the housing exclusion, which I had no idea about. Already found an extra $7,300 in tax savings! The document analysis feature is pretty impressive too - it caught a reporting error in my employer-provided housing allowance that would have messed up my calculations.

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Melina Haruko

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If you're still having issues with FEIE questions, you might want to talk directly with the IRS. I know, I know - getting through to them feels impossible, but I used https://claimyr.com and it completely changed my experience. After trying for DAYS to reach someone at the IRS international tax department, Claimyr got me connected in under 20 minutes. The IRS agent walked me through exactly how to properly document my qualifying period on Form 2555 and confirmed I was calculating everything correctly. You can see how it works in this demo: https://youtu.be/_kiP6q8DX5c - basically they navigate the phone tree for you and call you once they've reached an actual human. Saved me hours of frustration and hold music!

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Wait, how does this even work? Does it just dial for you or something? I'm confused about what problem this is actually solving...

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Reina Salazar

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Sorry but this sounds like BS. There's no way to "skip the line" with the IRS. I've been trying for months to get through about my foreign tax credit issues. If this actually worked, everyone would be using it. Sounds like a scam to me.

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Melina Haruko

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It doesn't just dial for you - they use their system to navigate through all the IRS phone menus and wait on hold for you. When they actually reach a live person, they call you and connect you directly to that agent. So you don't waste hours listening to hold music or getting disconnected. I was skeptical too, but it really does work. They're not "skipping the line" - they're just waiting in it for you. The IRS doesn't have any special queue for them. Think of it like having someone stand in a physical line on your behalf, then calling you when they reach the front. They're especially useful for reaching specialized departments like international tax services where the wait times are usually the worst.

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Reina Salazar

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I need to publicly eat my words about Claimyr. After my skeptical comment, I figured "what do I have to lose" and tried it anyway for my foreign tax credit issue. Not only did it work, but I actually got connected to an IRS international tax specialist in about 25 minutes! All those months of trying on my own, getting disconnected after waiting an hour, or being told to call back later... what a waste of time. The agent I spoke with resolved my foreign tax credit question immediately and even helped me figure out how it interacts with my partial-year FEIE claim (I returned to the US mid-year). Worth every penny just for my sanity alone. Sometimes I hate being wrong but in this case I'm actually glad!

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One thing nobody mentioned yet about the FEIE - if your tax home is in a foreign country, you might also qualify under the Bona Fide Residence Test instead of just Physical Presence. It's less about counting days and more about proving you're truly residing in Singapore. Things like having a permanent residence there, involvement in the local community, intentions to stay long-term, etc. The benefit is that short trips back to the US (like your Christmas visit) don't affect your qualification as much. The downside is it's more subjective and documentation-heavy. But something to consider if you're planning to stay in Singapore long-term!

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Lena Schultz

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That's interesting! I do have a 2-year lease here and a Singapore employment pass. Would that help establish bona fide residence? The physical presence test seems more straightforward but I'm wondering if bona fide residence might be better long-term since I do plan to visit home occasionally.

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Yes, your 2-year lease and Singapore employment pass are excellent proof for the Bona Fide Residence test! Other helpful documentation would include local bank accounts, driver's license (if you have one), utility bills in your name, and evidence of community involvement. You're right that physical presence is more straightforward for your first year, but bona fide residence gives you more flexibility for visits home in future years. The key is demonstrating that Singapore is truly your tax home and center of life. Once established, you can generally maintain bona fide residence status even with more substantial visits to the US, as long as your trips are temporary and you clearly intend to return to Singapore.

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Demi Lagos

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Don't forget about state taxes! The FEIE only applies to federal taxes. Depending on which state you lived in before moving abroad, you might still owe state income tax even while living in Singapore. Some states like California and Virginia are notorious for trying to claim you as a resident unless you've completely severed all ties.

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Mason Lopez

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This is so true. I'm from California and even after moving to Germany for work, they kept considering me a CA resident because I kept my driver's license and had some investment property there. Had to pay state taxes on top of everything else until I officially "moved" to Florida first (on paper) before heading overseas again.

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