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Limit on Excludable Amount For tax year2021, the maximum foreign earned income exclusion is the lesser of the foreign income earned or $108,700 per qualifying person. For tax year2022, the maximum exclusion is $112,000 per person.
The computation of the base housing amount (line 32 of Form 2555) is tied to the maximum foreign earned income exclusion. The amount is 16% of the maximum exclusion amount divided by 365 (366 if a leap year), then multiplied by the number of days in your qualifying period that fall within your tax year.
Pay received as a military or civilian employee of the U.S. government or any of its agencies. Pay for services conducted in international waters or airspace (not a foreign country) Payments received after the end of the tax year following the year in which the services that earned the income were performed.
However, you may qualify to exclude your foreign earnings from income up to an amount that is adjusted annually for inflation ($107,600 for 2020, $108,700 for 2021, $112,000 for 2022, and $120,000 for 2023).
If you are a U.S. citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income. However, you may qualify to exclude from income up to $108,700 (for 2021) of your foreign earnings. In addition, you can exclude or deduct certain foreign housing amounts.
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People also ask

Do I still need to file a U.S. tax return? Yes, if you are a U.S. citizen or a resident alien living outside the United States, your worldwide income is subject to U.S. income tax, regardless of where you live. However, you may qualify for certain foreign earned income exclusions and/or foreign income tax credits.
Foreign sourced income typically refers to any income which originated outside of Malaysia - including employment income, and income from other sources such as dividend payments.
One of the main catalysts for the IRS to learn about foreign income which was not reported is through FATCA, which is the Foreign Account Tax Compliance Act. In ance with FATCA, more than 300,000 FFIs (Foreign Financial Institutions) in over 110 countries actively report account holder information to the IRS.
The main forms that a U.S. taxpayer uses to report foreign interest income, include: 1040 Tax Return. Schedule B. Form 8938.
You can claim both the FTC or FEIE when filling out your tax returns. The Foreign Tax Credit is filed with IRS Form 116 and the Foreign Earned Income Exclusion with IRS Form 2555. You can submit these forms electronically or by mail with your Form 1040.

form 2555 2022