Foreign Housing Exclusion — Tax Deduction Guide 2026
Exclude or deduct certain foreign housing expenses above the base amount.
Eligibility
US expats with foreign housing expenses
Tax Savings Calculator
Estimated Tax Savings
$1,100
At the 22% tax bracket, a $5,000 deduction saves you $1,100 in taxes.
Savings by Tax Bracket
Requirements
- 1Must qualify for FEIE
- 2Reasonable housing costs
- 3Base amount varies by location
Common Mistakes to Avoid
- !Including non-qualifying expenses
- !Not meeting FEIE requirements
Required Tax Forms
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Frequently Asked Questions
What is the Foreign Housing Exclusion?
Exclude or deduct certain foreign housing expenses above the base amount.
Who is eligible for the Foreign Housing Exclusion?
US expats with foreign housing expenses
How much can I save with the Foreign Housing Exclusion?
The average tax savings is $8,000 per year. Your actual savings depend on your tax bracket and qualifying amount.
What forms do I need for the Foreign Housing Exclusion?
You'll need to file Form 2555 to claim this deduction.
What are common mistakes with the Foreign Housing Exclusion?
Common mistakes include: Including non-qualifying expenses; Not meeting FEIE requirements. Always double-check requirements before filing.
Is the Foreign Housing Exclusion worth claiming?
With average savings of $8,000, the foreign housing exclusion is highly valuable. Make sure you meet all eligibility requirements.