Can my spouse and I each claim the full FEIE if we both qualify?
The Foreign Earned Income Exclusion limit for the 2025 tax year is $130,000 per qualifying individual, per the IRS inflation adjustment. Married couples in which both spouses qualify under the Physical Presence Test or Bona Fide Residence Test can each claim the full $130,000, excluding up to $260,000 in combined U.S. federal income tax.
What the FEIE limit covers:
- $130,000 cap (2025 tax year) on foreign wages, salary, and self-employment earned income
- Per-person limit, not per-household, so each qualifying spouse claims their own
- Prorated if you qualified for only part of the year
- Applies to income earned while your tax home is abroad and you meet PPT or BFR
Year-over-year comparison:
| Tax Year | FEIE Limit | Increase from previous year |
| 2025 | $130,000 | $3,500 |
| 2026 | $132,900 | $2,900 |
Additional exclusions stacked on the FEIE:
- Foreign Housing Exclusion: qualifying housing costs above the base amount (16% of FEIE, or roughly $20,800 for 2025), up to a city-specific cap
- Foreign Tax Credit: available on income above the FEIE or on excluded income categories
Filing mechanics for 2026:
- Claim on Form 2555 attached to your 2025 Form 1040 (filed in 2026)
- Meet the 12-month PPT window or bona fide residence for all of 2025
- Self-employment income qualifies for the FEIE but remains subject to U.S. self-employment tax unless a totalization agreement applies
For the full FEIE strategy, see our Foreign Earned Income Exclusion.
Last updated on April 29, 2026
