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What Is the FEIE Waiver and When Does the IRS Grant One?

The FEIE waiver is an IRS provision under Section 911(d)(4) of the Internal Revenue Code that waives the time requirements for the Foreign Earned Income Exclusion (FEIE) when Americans are forced to leave a foreign country due to war, civil unrest, or similar adverse conditions. Without the waiver, these expats would lose their ability to exclude up to $130,000 (2025 tax year) of foreign earned income from U.S. taxes simply because dangerous circumstances cut their time abroad short.

The IRS publishes a new Revenue Procedure each year listing the specific countries and dates that qualify. If you left a qualifying country on or after the designated date, you may still claim the FEIE for the period you were actually present, even if you did not meet the usual 330-day or full-year requirements.

Think You May Qualify for an FEIE Waiver?

Greenback helps you determine eligibility and apply the waiver correctly on your U.S. tax return.

Here is how the waiver works, who qualifies, and how to claim it on your tax return.

What Does the FEIE Normally Require?

To claim the FEIE and exclude foreign earned income from U.S. taxes, you normally must meet one of two time-based tests:

Physical Presence Test: You must be physically present in a foreign country or countries for at least 330 full days during any 12-month period. A “full day” is a 24-hour period from midnight to midnight. Travel days between countries count, but days spent in the U.S. (even in transit) do not.
Bona Fide Residence Test: You must be a bona fide resident of a foreign country for an uninterrupted period that includes an entire tax year (January 1 through December 31). Brief trips back to the U.S. do not automatically disqualify you, but your intention must be to maintain foreign residence.

Both tests also require that your tax home be in a foreign country during the qualifying period.

When war, a natural disaster, an evacuation order, or civil unrest forces you to leave before you reach 330 days or complete a full tax year, you would normally fail these tests and lose the exclusion entirely. The FEIE waiver exists to prevent that outcome.

How Does the FEIE Waiver Work?

Under IRC Section 911(d)(4), the Secretary of the Treasury, after consulting with the Secretary of State, can determine that adverse conditions in a specific country require Americans to leave and prevent the normal conduct of business. When that determination is made, the IRS publishes a Revenue Procedure that formally waives the time requirements for affected taxpayers.

The waiver means:

You are treated as a “qualified individual” for the period you were actually present in the affected country, even though you did not meet the 330-day or full-year requirement.
You can claim the FEIE for the foreign-earned income you earned while physically in the country. The exclusion is prorated based on actual days of qualifying presence, not the full year.
The Foreign Housing Exclusion also applies: If you had qualifying housing expenses during your time in the affected country, those remain eligible for exclusion.
The waiver is not automatic: You must demonstrate that, if not for the adverse conditions, you could reasonably have been expected to meet the time requirements. In practice, this means showing you had established employment, a residence, or a business arrangement that would have continued.

When Does the IRS Grant FEIE Waivers?

The IRS grants waivers for conditions that make it impossible or unreasonable for Americans to remain in a foreign country. The statute uses the phrase “war, civil unrest, or similar adverse conditions,” which the IRS has interpreted to include:

War and armed conflict: Countries experiencing active military operations, invasion, or sustained combat (e.g., Ukraine since 2022, Iraq in multiple years).
Civil unrest and political instability: Countries where government collapse, widespread violence, coups, or political upheaval make daily life and business operations unsafe (e.g., Haiti, South Sudan, Mali).
Natural disasters: While less common in annual Revenue Procedures, the statutory language covers conditions that “preclude the normal conduct of business.” The COVID-19 pandemic in 2020 triggered a global waiver under Rev. Proc. 2020-27, the broadest application of this provision in history.
Evacuations and State Department advisories: The Treasury consults with the State Department before issuing waivers. Countries under Level 4 “Do Not Travel” advisories or formal evacuation orders are strong candidates for inclusion.

The IRS typically publishes the annual waiver list in the first quarter of the following year. For example, countries qualifying for the 2025 tax year were published in Rev. Proc. 2026-16 in March 2026.

Countries Currently Eligible for the FEIE Waiver

The IRS updates this list annually. Below are the most recent designations:

2025 Tax Year (Rev. Proc. 2026-16)

Country	Adverse Conditions Start Date
Haiti	January 1, 2025
Ukraine	January 1, 2025
Democratic Republic of the Congo	January 28, 2025
South Sudan	March 7, 2025
Iraq	June 11, 2025
Lebanon	June 22, 2025
Mali	October 30, 2025

2024 Tax Year (Rev. Proc. 2025-17)

Country	Adverse Conditions Start Date
Haiti	January 1, 2024
Ukraine	January 1, 2024
Iraq	January 1, 2024
Sudan	April 15, 2024
Democratic Republic of the Congo	May 3, 2024
Bangladesh	August 5, 2024

Countries like Ukraine, Iraq, and Haiti have appeared on the list for multiple consecutive years due to ongoing conditions. Each year’s Revenue Procedure applies only to the tax year specified.

For the latest list, see our news article: IRS Waives FEIE Time Requirements for 7 Countries

How to Qualify for the FEIE Waiver

To use the waiver, you must meet all of the following:

1. Your tax home was in the affected country: Your principal place of business or employment must have been in the country, not just a temporary visit.

2. You were present on or before the designated start date: If you first arrived in the country after the date listed in the Revenue Procedure, you do not qualify. The waiver only covers people who were already established in the country when conditions deteriorated.

3. You left because of the adverse conditions: Your departure must have been caused by the war, civil unrest, or dangerous conditions identified by the IRS. Leaving for personal reasons unrelated to the adverse conditions does not qualify.

4. You can show you would have met the time requirements: This is the “but for” test. You must demonstrate that, if conditions had remained normal, you could reasonably have been expected to complete the 330-day physical presence requirement or maintain bona fide residence for the full tax year. Evidence includes an employment contract, lease, business registration, or other documentation showing your intent to remain.

Example (qualifies): An American teacher living and working in Lebanon since 2023 departed on July 15, 2025, due to escalating conflict. She had a full-year teaching contract, a signed lease, and her children were enrolled in the local school. She qualifies for the waiver and can claim the FEIE on the income she earned while in Lebanon.

Example (does not qualify): A contractor who first arrived in Iraq on August 1, 2025 (after the June 11 start date) and departed in November 2025 does not qualify, because he was not present in Iraq on or before the designated date.

How to Claim the FEIE Waiver on Form 2555

To claim the waiver on your tax return:

Step 1: File Form 2555 with your Form 1040.
Step 2: In Part I of Form 2555, indicate that you are claiming the Section 911(d)(4) waiver. Provide the country name and the dates you were present.
Step 3: Attach a statement to your return explaining that you expected to meet the time requirements but were forced to leave due to adverse conditions, and that the conditions prevented the normal conduct of business.
Step 4: Calculate your exclusion based on actual qualifying days. The FEIE is prorated: if you were present for 200 out of 365 days, your maximum exclusion is approximately $71,233 ($130,000 x 200/365) for the 2025 tax year.
Step 5: Keep supporting documentation (see below).

If you already filed your return without claiming the FEIE, you can file an amended return (Form 1040-X) within three years of the original filing date to claim the exclusion retroactively.

Common Mistakes Expats Make With the FEIE Waiver

Assuming the waiver is automatic: It is not. You must actively claim it on Form 2555 and attach a supporting statement. The IRS will not apply it for you.
Not keeping documentation: The IRS requires you to prove you would have met the time requirements. Keep employment contracts, lease agreements, travel records, embassy communications, and news reports about the conditions in the country.
Arriving after the designated start date: The waiver only applies if you were in the country on or before the date listed in the Revenue Procedure. Arriving after that date disqualifies you, even if you left due to the same adverse conditions.
Confusing the waiver with a blanket exemption: The waiver only covers the period you were actually present in the affected country. Income earned after you returned to the U.S. is not excludable, even if you claimed the waiver for the earlier period.
Not considering the Foreign Tax Credit as an alternative: In some cases, especially if you were paying high local taxes in the affected country, the FTC may save you more than the FEIE. An expat tax professional can help you compare the two. See: FEIE vs. FTC: Which Saves You More?
Filing late and missing the amendment window: If the Revenue Procedure is published after you have already filed your return, you have three years to amend and claim the FEIE retroactively. Do not let this window close.

What Documentation Should I Keep?

The IRS requires you to establish that you would have met the time requirements if not for the adverse conditions. Maintain:

Employment contract, assignment letter, or business registration in the affected country
Lease or housing agreement showing your foreign residence
Travel records showing your date of arrival and departure
Communication from your employer, embassy, or other authority regarding the departure
News reports or State Department advisories regarding conditions in the country
Any other evidence of your established life in the country (utility bills, bank statements, school enrollment)

Frequently Asked Questions

Does the FEIE waiver apply to all countries?

No. The waiver only applies to countries specifically listed in the IRS Revenue Procedure for a given tax year. The IRS makes this determination annually after consulting with the State Department. If your country is not on the list, the waiver does not apply, even if the conditions there are dangerous. However, you may still qualify for the FEIE through the standard physical presence test if you spent 330 days in foreign countries combined.

Can the FEIE waiver apply to natural disasters?

The statute covers “war, civil unrest, or similar adverse conditions.” The IRS applied this broadly during COVID-19 (Rev. Proc. 2020-27), which was not a war or civil unrest but was deemed to preclude the normal conduct of business. Natural disasters (earthquakes, hurricanes, volcanic eruptions) could qualify if the IRS determines they meet this standard, but the annual Revenue Procedures have historically focused on armed conflict and political instability.

What if I relocated to another foreign country instead of returning to the U.S.?

You can still claim the waiver for the period you were in the affected country. If you then establish yourself in a different foreign country, you may also be able to count your days there toward the 330-day physical presence test. The physical presence test counts days in any foreign country, not just one.

Does the waiver apply to the Foreign Housing Exclusion as well?

Yes. If you had qualifying housing expenses while living in the affected country, those remain eligible for the Foreign Housing Exclusion for the period you were present.

How often does the IRS update the list of qualifying countries?

The IRS publishes a new Revenue Procedure each year, typically in the first quarter, covering the prior tax year. Countries can appear on the list for multiple consecutive years if conditions persist. Ukraine and Iraq, for example, have been listed every year since 2022. We update our coverage each time the IRS releases a new list. See the latest FEIE waiver countries for the 2025 tax year: IRS Waives FEIE Time Requirements for 7 Countries

Can my employer help me claim the FEIE waiver?

If you are on a corporate assignment abroad, your employer’s tax team should be aware of the waiver and factor it into any tax equalization calculations. The waiver can significantly reduce the employer’s assignment costs by preserving the FEIE even when an assignment is cut short.

Get Help Claiming the FEIE Waiver

If you were forced to leave a foreign country due to dangerous conditions and are unsure whether you qualify for the FEIE waiver, an expat tax professional can review your situation, prepare Form 2555, and ensure you claim every benefit available.

No matter how late, messy, or complex your return may be, we can help. If you are ready to be matched with a Greenback accountant, get started here. For general questions about your situation or working with Greenback, contact our Customer Champions.

Make Sure Your FEIE Waiver Is Filed Correctly

Greenback’s CPAs and Enrolled Agents help expats claim the FEIE waiver and report income accurately.

This article is for informational purposes only and does not constitute tax, legal, or financial advice. Tax laws are complex and subject to change. Always consult with a qualified tax professional regarding your specific situation.