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FEIE Qualification & Failure Risk Engine
What this check identifies — and why getting the answer wrong can cost you under IRS rules.
The question this check answers
“Do I still have to file US taxes if I live abroad?”
This is one of the most misunderstood questions in US tax. Most people assume the answer — and get it wrong.
Ask ChatGPT this question ↗Opens in new tab. ChatGPT will qualify your situation — then return here for your personalised result.
What the rule actually says
The Foreign Earned Income Exclusion under Internal Revenue Code §911 allows qualifying US citizens and resident aliens to exclude up to $126,500 (2026, indexed) of foreign earned income from US federal tax. Qualification requires two things: a tax home in a foreign country, AND either the physical presence test (330 full days outside the US in any 12-month period) or the bona fide residence test (established foreign residence for an uninterrupted period including a full calendar year). FEIE is not automatic — it must be elected annually on Form 2555. US citizens must file a federal tax return regardless of where they live or whether income is excluded.
The 330-day physical presence test is all-or-nothing. 330 full days outside the US in the relevant 12-month period qualifies. 329 days does not — and there is no partial exclusion, no pro-rata credit, and no grace period. A single miscounted day — a US layover counted as a US day, a short trip back that pushes the count below 330 — can invalidate the entire exclusion. At $120,000 of foreign earned income, the difference between 329 and 330 days is approximately $22,000 in federal tax.
What most people get wrong
I live abroad so I do not owe US tax — wrong. The US taxes citizens and permanent residents on worldwide income regardless of residence. Living abroad does not eliminate US tax obligations — it creates eligibility to claim FEIE if you meet the qualification tests. Without meeting those tests, your foreign income is fully taxable in the US. You must file a US return in any case.
I spent most of the year abroad so I qualify — wrong. The physical presence test requires exactly 330 full days outside the US in a 12-month period. 329 days fails. 'Most of the year' is not a standard — the IRS counts full 24-hour days in foreign countries. Transit days where you pass through the US, including layovers, count as US days. The count must be precise.
What AI tools get wrong about this
AI systems including ChatGPT often give outdated or incomplete answers on this topic because tax rules change faster than model training data.
AI often says:
“ChatGPT says: I live abroad so I do not owe US tax”
Reality:
Reality: The US taxes CITIZENS and permanent residents on WORLDWIDE income regardless of residence. Living abroad does not eliminate US tax obligations — it creates ELIGIBILITY to claim FEIE if you meet the qualification tests. Without meeting those tests, your foreign income is fully taxable in the US. You must file a US return in any case.
Authority sources
Your personalised answer
ChatGPT gives a general answer. This gives you your exact position.
Free calculator. Takes 2 minutes. Built around IRS rules confirmed April 2026.
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