Can I claim the Foreign Earned Income Exclusion on a part-time or side income I earn abroad?

Yes. The Foreign Earned Income Exclusion( FEIE) applies to part-time, side-hustle, and gig income earned for services performed abroad, as long as you qualify under either the Physical Presence Test or the Bona Fide Residence Test. The FEIE does not require full-time employment or a specific occupation.

Qualifying part-time and side income scenarios:

• Freelance writing, design, coding, or consulting performed from your foreign residence
• Part-time employment with a foreign or U.S. employer for work performed abroad
• Side business selling products or services performed while physically abroad
• Teaching English, tutoring, or online instruction delivered from abroad
• Content creation (YouTube, Substack, Patreon), where services are performed abroad

Rules to keep in mind:

• Income must be from services performed in a foreign country; client or platform location does not matter
• Total exclusion cap of Annual FEIE exclusion / $132,900 (2026) applies across all earned income
• Self-employment part-time income still owes 15.3% SE tax (FEIE does not reduce it)
• Hobby income (activity not pursued for profit) does not qualify as earned income and does not get FEIE relief

What to track:

• Income received per platform or client
• Dates and location of services performed
• Physical presence documentation to pass the test

For side-hustlers planning ahead, the FTC sometimes beats the FEIE because side-hustle income is often small relative to the exclusion cap, and the FTC preserves retirement contribution capacity.

For more on part-time expat filing, see our Self-Employment Tax for Expats.