Foreign Earned Income Exclusion

Foreign Earned Income Exclusion.
In general, a U.S. citizen or a resident alien of the United States living abroad is taxed on their worldwide income. However, these taxpayers may qualify to exclude from income up to an amount of foreign earnings that is adjusted annually for inflation ($100,800 for 2015 or $101,300 for 2016). In addition, eligible taxpayers can exclude or deduct certain foreign housing amounts.