Get Started

What is the Foreign Housing Deduction?

The IRS allows qualified US expats to deduct acceptable housing expenses from their total income. The limit changes every year and is based on a percentage of the Foreign Earned Income Exclusion. As the FEIE is increased annually for inflation, the Foreign Housing Allowance also increases annually. This is applied to a US expat tax return by attaching Form 2555.

For more information, please visit our video blog to learn how the Foreign Housing Allowance works.

Was this helpful?

Thank You!

Can’t find what you’re looking for?

Let our Customer Champion team help!