Tax Foreign Income Guide for International Earnings (2026)
Report foreign income tax: foreign earned income exclusion, foreign tax credit, and international income reporting.
Summary
Foreign income has special tax treatment. This guide explains exclusion, credit, and reporting requirements.
Key Steps
- 1Foreign earned income exclusion: up to $120,000 excluded if qualify.
- 2Physical presence test: 330 days abroad in 12-month period.
- 3Foreign tax credit: credit for taxes paid to foreign governments.
- 4Choose method: exclusion or credit, maximize tax benefit.
- 5FBAR filing: report foreign bank accounts over $10,000.