Who this is for
- Americans working in the UK under an employment contract
- Self-employed expats meeting the physical presence test
Foreign Income & Credits
Foreign Earned Income Exclusion (Form 2555)
Exclude up to ~$126,000 of foreign earned income if you qualify under the bona fide residence or physical presence test.
Overview
Why this filing matters
Exclude up to ~$126,000 of foreign earned income if you qualify under the bona fide residence or physical presence test.
Note — Up to ~$126k exclusion — subject to annual IRS limit.
What you get
- FEIE eligibility analysis
- Housing exclusion/deduction where applicable
- Form 2555 preparation
Our approach
Built for the cross-border edge cases.
Most US-UK filings fail the same way: a treaty position that wasn’t disclosed, a foreign account that slipped under FBAR thresholds, a PFIC election filed in the wrong year, a carry-forward not tracked from one preparer to the next. The cost of any single one of those is rarely catastrophic on its own — it’s the compounding over multiple filing seasons that quietly turns a clean tax life into a six-figure remediation project.
We start every engagement by looking at the edge cases first — the elections, the disclosures, the carry-forwards, the side-effects on next year’s return — and only then turn to the routine line items. The result is a filing that reads cleanly to anyone who picks it up next: another preparer, the IRS, or a successor in your own business.
- Position memo on every meaningful election, with the reasoning written down for the next return
- Carry-forwards (FTC, capital losses, PFIC basis) tracked year-on-year so nothing expires unused
- Plain-English commentary on every position taken — the kind that makes a future audit a non-event
Our process
How we handle your foreign earned income exclusion (form 2555)
Four steps from first call to filed return. Fixed fee confirmed before any work begins.
- 01
Intake
30-minute scoping call. We confirm your situation, required filings, and send a tailored document list.
- 02
Review
We analyse your position, flag any cross-border risks, and confirm the scope and fee before any work starts.
- 03
Prepare
Draft returns and schedules are prepared with plain-English commentary on key positions for your review.
- 04
File
E-file with the IRS / FinCEN, send confirmations, and handle any follow-up notices or questions.
Pricing
Fixed fees — no surprises
FEIE analysis and Form 2555 are typically bundled with your 1040 return. Standalone FEIE-vs-FTC modelling (if you're reconsidering strategy) starts from £250 + VAT.
FAQs
Common questions about Foreign Earned Income Exclusion (Form 2555)
Should I take the FEIE or claim foreign tax credits?
Typically FTCs win for higher earners in high-tax countries like the UK because UK rates exceed US brackets, generating carry-forward credits. FEIE is cleaner when your UK tax is below the US bracket or you're in a low/no-tax country. We model both before choosing.
What's the 2025 FEIE limit?
Approximately $126,500 per person, indexed annually. Married couples filing jointly can each claim on their own earned income — so up to ~$253,000 combined if both qualify.
Bona fide residence or physical presence — which test do I use?
Either works. Bona fide residence requires an uninterrupted tax year abroad plus intent to stay. Physical presence is mechanical — 330 full days in any rolling 12-month period. Physical presence suits first-year movers; bona fide residence suits long-term expats.
Can I combine FEIE with the foreign housing exclusion?
Yes, and it's often worth it in expensive cities like London. Housing costs above a base amount (roughly 16% of the FEIE cap) can be excluded on top of the $126k earned-income figure, up to city-specific ceilings.
Does FEIE cover my UK pension contributions?
FEIE only excludes earned income. Employer pension contributions, most investment income, and capital gains aren't earned income so they need separate treatment — usually FTCs or treaty positions.
Ready to get this filed?
Tell us your situation and we'll confirm scope, a fixed fee, and the documents we need — usually within one business day.