How do I choose between the foreign earned income exclusion and the foreign tax credit?

The Premium optimizer runs both elections on the same salary and host-country tax. The exclusion often wins when foreign tax is low; the credit often wins when foreign tax already exceeds US tax on that income. Confirm the election with a preparer before you file.

What does a 330-day physical presence calculator leave out of the tax math?

The free tool at /tools/feie-calculator only counts days toward the physical presence test. The optimizer adds bracket-level US tax under Form 2555 and Form 1116, including when the foreign tax credit beats the exclusion.

Does bona fide residence change the analysis versus the 330-day test?

Both tests can qualify you for the exclusion, but they are different facts. The optimizer still compares exclusion versus credit once you are modeling a qualifying year; it does not decide which presence test you meet.

Premium feature

FEIE vs FTC Optimizer

US expat election comparison with full bracket detail

The FEIE vs FTC Optimizer models US citizens abroad choosing between the Foreign Earned Income Exclusion (physical presence or bona fide residence test) and the Foreign Tax Credit on the same income scenario.

TL;DR — Key Takeaways

Last reviewed: April 1, 2026

→It walks bracket-level US tax with and without FEIE, compares FTC offset when foreign tax exceeds US tax on included income, and surfaces when one election dominates at your salary and host-country rate.
→Free /tools/feie-calculator covers presence-test day counting; the optimizer adds full tax math on Premium.

Sources: OECD Tax Database, national tax authorities, and our methodology. For filing decisions, consult a licensed tax professional.

How it works

Open the FEIE vs FTC optimizer from your Premium dashboard.
Enter your gross salary and the foreign tax you have paid or expect to pay.
Review whether you are modeling the 330-day physical presence test or bona fide residence.
Compare estimated US tax under the Foreign Earned Income Exclusion (Form 2555) with the Foreign Tax Credit (Form 1116).
Use the result in a planning conversation with a preparer — it is not a filed return.

Who it's for

US expats earning six figures abroad who need more than a day-count check before April elections.

Common questions

How do I choose between the foreign earned income exclusion and the foreign tax credit?: The Premium optimizer runs both elections on the same salary and host-country tax. The exclusion often wins when foreign tax is low; the credit often wins when foreign tax already exceeds US tax on that income. Confirm the election with a preparer before you file.
What does a 330-day physical presence calculator leave out of the tax math?: The free tool at /tools/feie-calculator only counts days toward the physical presence test. The optimizer adds bracket-level US tax under Form 2555 and Form 1116, including when the foreign tax credit beats the exclusion.
Does bona fide residence change the analysis versus the 330-day test?: Both tests can qualify you for the exclusion, but they are different facts. The optimizer still compares exclusion versus credit once you are modeling a qualifying year; it does not decide which presence test you meet.

Premium features run in your private dashboard after sign-in. Public pages describe capabilities only—your trip logs and documents are never crawled. Planning tool, not tax advice.