The mechanics for avoiding double tax on foreign earnings — FEIE vs. foreign tax credits — and how the US-UK treaty layers on top.
Most US expats default to the Foreign Earned Income Exclusion because it sounds like 'tax-free up to the threshold.' For a lot of UK-based Americans — especially anyone earning above the FEIE cap, with UK pension contributions, or planning a return to the US — Foreign Tax Credits leave you materially better off and preserve carry-forwards. The decision compounds: once you elect FEIE, revoking it locks you out for five years.
Each one is a separate service with its own page — click Learn more on any block below to see the full scope, deliverables, and pricing notes.
Exclude up to ~$130,000 of foreign earned income (2025 tax year) if you qualify under the bona fide residence or physical presence test.
Up to ~$130k exclusion (2025) — subject to annual IRS limit.
Learn moreOffset UK income tax paid against your US liability. Often more beneficial than the FEIE for higher earners.
Offset UK tax against US liability.
Learn moreClaim benefits under the US-UK double tax treaty — residence tie-breaker, pension sourcing, and more.
US-UK double tax treaty claims.
Learn moreWe model FEIE vs. FTC on your last two years of income, factoring in UK pension contributions, ISA gains, and treaty-eligible income.
Recommend the position that minimises lifetime tax — not just this year's bill — and document the rationale so a future preparer can pick it up.
Prepare Form 2555 (FEIE) or Form 1116 (FTC), file Form 8833 for any treaty position, and reconcile UK tax paid to your US return.
Track carry-forwards, watch for thresholds (FEIE cap, AMT interaction), and revisit the election when life events change the math.
I'd been on FEIE for six years 'because that's what my old preparer used.' Switching to FTCs in the right year saved me five figures and unlocked a carry-forward I didn't know existed.
We can run the FEIE-vs-FTC comparison from the documents you already have on hand.
Send us a one-paragraph description of your situation and we'll tell you which filings are actually on the hook.
