Green card holder taxes 2026: foreign income and filing rules
Green card holders are taxed on worldwide income – the same rule that applies to US citizens. If you hold a green card and live abroad, you must report every dollar of foreign income on your US return, including wages, investment earnings, and rental income.
Relief tools like the Foreign Earned Income Exclusion (FEIE) and Foreign Tax Credit (FTC) can reduce or eliminate double taxation, but the filing obligation itself stays in place as long as your permanent resident status is active.
At a glance:
- Who must file: any green card holder whose worldwide income meets the standard filing thresholds – $15,750 (2025) for single filers, $31,500 (2025) for married filing jointly. Self-employed green card holders must file once net self-employment earnings reach $400, even if total income is below the standard threshold.
- Which form: Form 1040 (the same resident return US citizens file), plus any applicable international schedules.
- Main relief tools: FEIE – up to $130,000 (2025) excluded on Form 2555. FTC – dollar-for-dollar credit on Form 1116.
TFX example – green card holder in the Netherlands: She earns $95,000 in salary and reports the full amount on Form 1040. Because she qualifies for the FEIE, the entire $95,000 falls within the $130,000 (2025) exclusion and her US tax on that income drops to $0.
Green card holders share the same filing deadlines, required forms, and available credits as US citizens living abroad – the US expat tax filing guide breaks down all three.
Key facts about taxes for green card holders
The tax implications of holding a green card extend to every type of income – not just wages earned in the US.
Understanding those implications before your first filing year helps you plan which exclusions and credits to claim.
The following 5 facts apply to every green card holder filing a US return:
- Resident alien status: holding a valid green card makes you a US resident alien for tax purposes. Physical presence in the US is not required – the card itself establishes residency.
- Worldwide income reporting: you report all income on Form 1040, no matter where it is earned. This includes foreign wages, self-employment income, dividends, interest, rental income, capital gains, pensions, and crypto gains.
- Double-tax relief: the FEIE excludes up to $130,000 (2025) of qualifying earned income on Form 2555. The FTC offsets US tax dollar-for-dollar for foreign income taxes paid, claimed on Form 1116.
- Foreign account reporting: you must file an FBAR (FinCEN Form 114) if the total value of your foreign financial accounts exceeds $10,000 at any point during the year. Form 8938 (FATCA) applies when specified foreign assets exceed $200,000/$300,000 (single, living abroad) or $400,000/$600,000 (married filing jointly, living abroad).
- Filing deadlines: the regular due date is April 15, 2026. Green card holders living abroad get an automatic two-month extension to June 15, 2026 – no form needed. Form 4868 extends further to October 15, 2026. Interest on unpaid tax starts from April 15 regardless of extensions.
Myth vs. fact: Do immigrants with green cards pay taxes only on US income?
- Myth. Some green card holders assume foreign income is not taxable.
- Fact. The IRS treats green card holders as resident aliens, and resident aliens are taxed on worldwide income (IRC § 7701(b)) – the same rule that applies to US citizens.
Do green card holders pay taxes on foreign income?
Yes. A US green card holder owes tax on all income worldwide, including income earned or received in a foreign country. The IRS does not distinguish between domestic and foreign income for a resident alien – it all goes on Form 1040.
Green card holders must report the following 6 categories of taxable foreign income on Form 1040:
- Wages, salaries, and bonuses from a foreign employer
- Self-employment and freelance income earned abroad
- Foreign dividends, interest, and capital gains
- Rental income from foreign property
- Foreign pensions and annuities (unless a treaty specifically exempts them)
- Cryptocurrency gains from transactions on foreign exchanges
The following 3 items are reporting-only and handled on separate forms:
- Foreign bank accounts above $10,000 aggregate – reported on FBAR (FinCEN Form 114), not on the income return
- Specified foreign financial assets above the FATCA threshold – reported on Form 8938, attached to Form 1040
- Foreign trust transactions (creating, funding, or receiving a distribution from a foreign trust) – reported on Form 3520 with no dollar minimum. Gifts or bequests from foreign individuals or estates above $100,000 – also reported on Form 3520.
TFX example – Marco, green card holder in Spain:
- Salary: €80,000 from a Spanish employer
- Dividends: €3,000 from a German brokerage
- Rental income: €6,000 from a flat in Madrid
All three income streams go on his Form 1040. His Spanish salary qualifies for the FEIE ($130,000 cap, 2025). The dividends and rental income do not qualify – not earned income – but Spanish and German taxes paid on those amounts can be claimed as an FTC on Form 1116.
This worldwide tax obligation applies even if you have not lived in the US for years. Your green card and your tax obligation are linked until your LPR status is formally ended – not when you leave the country or when the card expires.
The distinction between earned and unearned income determines which relief tools apply – the FEIE covers only earned income, while the FTC covers both.
Cryptocurrency gains from selling or exchanging digital assets are unearned income, reported on Schedule D and Form 8949. Crypto received from mining, staking, or as payment for services is ordinary income instead, reported as such on Form 1040.
Either way, the digital asset question on Form 1040, page 1, must be answered.
What foreign income must green card holders report?
Every type of income a green card holder receives – regardless of country, currency, or payer – must be reported on the US return if it meets the filing threshold ($15,750 single, 2025).
Self-employed green card holders must file once net self-employment earnings reach $400, even if total income is below that threshold.
Some income types also trigger separate information returns beyond Form 1040.
The following table shows 8 foreign income types, where each is reported on Form 1040, and whether it also triggers a separate information return:
| Income type | Reported on Form 1040 | Also triggers information reporting |
|---|---|---|
| Foreign wages and salaries | Yes – Schedule 1 or directly on 1040 | No (unless employer issues a W-2 equivalent) |
| Self-employment income | Yes – Schedule C + Schedule SE | No additional form beyond Schedule C |
| Foreign dividends | Yes – Schedule B | Possibly Form 8938 if held in a specified foreign financial asset |
| Foreign interest | Yes – Schedule B | Possibly FBAR and/or Form 8938 |
| Foreign capital gains | Yes – Schedule D + Form 8949 | Possibly Form 8938 |
| Foreign rental income | Yes – Schedule E | No (but Form 8938 if held through a foreign entity) |
| Foreign pensions | Yes – taxable portion on Form 1040 | Possibly FBAR and/or Form 8938 for the account |
| Cryptocurrency gains | Yes – Schedule D + Form 8949 | Digital asset question on Form 1040, page 1 |
TFX example – Priya, green card holder in Singapore:
- Salary: S$120,000 from a Singaporean employer
- Bank account: S$45,000 in a Singapore bank
- Brokerage: $60,000 in an Indian brokerage account
Her salary goes on Form 1040 and qualifies for the FEIE. The Singapore bank account and Indian brokerage account together exceed $10,000, so she files an FBAR. If those accounts plus any other specified foreign assets exceed $200,000 at year-end, she also files Form 8938.
First-year filing rules and dual-status tax filing
Your first year with a green card determines how you file – the rules hinge on the first day you are present in the US as a lawful permanent resident. If you are filing for the first time, pin down your residency starting date, because income earned before that date may be taxed differently.
The following 3 stages apply to your first year as an LPR:
- Before the green card effective date: you are generally a nonresident alien. Only US-source income is subject to US tax for this period.
- Green card effective date forward: you become a resident alien and report worldwide income from that date through December 31.
- First full calendar year: if you held the green card for the entire year, you file a standard Form 1040 with worldwide income for the full 12 months.
A dual-status return covers the year your status changed. You file Form 1040 as a resident for the resident portion and attach a statement or Form 1040-NR for the nonresident portion.
The resident portion uses the OBBB-adjusted standard deduction of $15,750 (2025, single). The nonresident portion allows only itemized deductions – no standard deduction.
A dual-status alien tax return splits income between resident and nonresident periods in a single filing.
If you were previously filing as a nonresident alien on Form 1040-NR, only US-source income was taxable – that changes the moment your green card is issued.
How to reduce double tax for green card holders?
The main tax benefits for green card holders living abroad come from 2 tools: the FEIE (up to $130,000 excluded, 2025) and the FTC (dollar-for-dollar credit for foreign taxes paid).
A tax treaty may provide additional relief for specific income types. The right choice depends on your income level, the foreign country’s tax rate, and whether your income is earned or passive.
For most green card holders in low-tax countries, the FEIE eliminates US tax on earned income entirely; the FTC is preferable when foreign taxes already exceed the US rate on the same income.
| Tool | Best for | Eligibility | Primary form | Key limitation |
|---|---|---|---|---|
| FEIE | Earned income in low- or zero-tax countries | Tax home abroad + physical presence test (330 days) or bona fide residence test | Form 2555 | Does not cover passive income; cannot claim FTC on excluded income |
| FTC | Mixed income in higher-tax countries | Paid qualifying foreign income tax | Form 1116 | Credit capped at US tax on foreign-source income; excess carries back 1 year, forward 10 years |
| Foreign housing exclusion | High housing costs abroad (add-on to FEIE) | Same as FEIE + qualified housing expenses above $20,800 (16% of FEIE, 2025) | Form 2555 | General cap of $39,000 (2025); higher limits for specific cities |
| Tax treaty relief | Specific income types (pensions, royalties) | Covered by an applicable US tax treaty | Form 8833 (disclosure) | Saving clause limits many benefits for US residents |
The FTC and FEIE both allow side-by-side calculations – run both with your actual income before choosing.
The TFX foreign tax credit guide and FEIE guide for 2025 returns go into more detail on this.
Foreign tax credit (FTC) example for green card holders
The FTC is a dollar-for-dollar credit for qualifying income taxes paid to a foreign government, claimed on Form 1116 (IRC § 901). It directly reduces your US tax liability – not your taxable income.
The following 7-step worksheet shows how the FTC eliminates $18,000 in US tax on $100,000 of German income:
| Step | Item | Amount |
|---|---|---|
| 1 | Foreign earned income (Germany) | $100,000 |
| 2 | German income tax paid (converted to USD) | $22,000 |
| 3 | US tax on $100,000 (before credits) | $18,000 |
| 4 | FTC limitation: US tax × (foreign source income ÷ worldwide income) | $18,000 |
| 5 | FTC claimed (lesser of tax paid or limitation) | $18,000 |
| 6 | Remaining US tax on this income | $0 |
| 7 | Unused foreign tax credit (carried forward up to 10 years) | $4,000 |
The full $18,000 US liability on the German income is wiped out. The leftover $4,000 in German tax that exceeds the US limitation carries forward for up to 10 years and can offset US tax in a future year when the limitation is higher.
Important: You cannot claim the FTC on income you have already excluded under the FEIE. If you exclude $130,000 (2025) on Form 2555, the FTC applies only to income you did not exclude – such as investment income or earned income above the FEIE cap (IRC § 911(d)(6)).
Foreign earned income exclusion (FEIE)
The FEIE lets qualifying taxpayers exclude up to $130,000 (2025) of foreign earned income – or $132,900 for tax year 2026 – by filing Form 2555 (IRC § 911).
It applies to wages, salaries, and self-employment income earned abroad. It does not apply to dividends, interest, capital gains, pensions, or rental income.
You must meet 1 of the following 2 tests to qualify:
- Bona fide residence test: you established a foreign country as your home for an uninterrupted period that includes a full calendar year. The IRS looks at housing, family ties, local employment, and intent to stay.
- Physical presence test: you were physically present in one or more foreign countries for at least 330 full days during any 12-month period. The days do not need to be consecutive.
TFX example – David, green card holder in Dubai: He earns $145,000 in 2025 and spent 340 days in the UAE during a qualifying 12-month period. He excludes $130,000 (2025) on Form 2555 and pays US tax on the remaining $15,000. Since the UAE has no income tax, there is no FTC available.
The FEIE does not eliminate self-employment tax – you still owe SE tax unless a totalization agreement applies. And the FEIE election, once revoked, cannot be reclaimed for 5 years without IRS approval.
The TFX FEIE guide for 2025 returns covers this in more depth.
Tax treaties and the foreign housing exclusion
Tax treaties between the US and other countries can reduce or eliminate US tax on specific income types, but the “saving clause” in most treaties limits their benefit for green card holders.
As a resident alien, you are generally subject to US tax on worldwide income regardless of treaty provisions, with narrow exceptions for pensions, certain royalties, and reduced withholding rates on interest or dividends.
A treaty tie-breaker can establish residency in the foreign country for tax purposes – file Form 8833 + Form 1040-NR – but your green card remains valid for immigration purposes.
Long-term residents, 8 of the last 15 years as an LPR, who claim a treaty tie-breaker may be treated as having expatriated under Section 877A – model the full impact of green card taxation before claiming one.
The foreign housing exclusion complements the FEIE by excluding qualifying overseas housing costs above $20,800 – that is 16% of $130,000, 2025 – on Form 2555.
The general cap is $39,000 (2025); higher limits apply in designated high-cost cities.
TFX example – Lisa, green card holder in London: She pays $42,000 per year in rent and utilities. Her base amount is $20,800 (2025). London’s IRS-designated cap for 2025 is $67,000, so her excludable housing amount is the full $42,000 − $20,800 = $21,200 – reducing her taxable income by $21,200 beyond the FEIE.
How to report foreign accounts and assets as a green card holder
Green card holders with financial accounts or assets outside the US face 2 separate reporting requirements – FBAR and FATCA. These are information returns, not tax payments.
The penalties for non-filing are severe: up to $16,536 (2025) per report for non-willful FBAR violations and $10,000 per form for FATCA.
The following table compares the 2 most common foreign account reports for green card holders abroad – FBAR and FATCA – across 6 key dimensions:
| FBAR (FinCEN Form 114) | FATCA (Form 8938) | |
|---|---|---|
| Filing trigger | Aggregate foreign account value exceeds $10,000 at any point during the year | Specified foreign assets exceed $200,000 year-end or $300,000 any time (single, abroad); $400,000/$600,000 (MFJ, abroad) |
| What is reported | Bank accounts, brokerage accounts, mutual funds, and any other financial account at a foreign institution | All FBAR-reportable accounts plus foreign stocks/securities held outside a US institution, interests in foreign entities, and foreign life insurance or annuity contracts |
| Filed with | FinCEN (electronically via BSA E-Filing, separate from your tax return) | IRS (attached to Form 1040) |
| Deadline | April 15, 2026, with automatic extension to October 15, 2026 | Same as your Form 1040 (including extensions) |
| Non-willful penalty | Up to $16,536 (2025) per report (31 USC § 5321) | $10,000 per form, per year |
| Willful penalty | Greater of $165,353 (2025) or 50% of account balance | $10,000 initial, plus up to $50,000 for continued failure after IRS notice; a separate 40% accuracy-related penalty (IRC § 6662(j)) can apply if an underpayment is tied to undisclosed foreign assets |
The TFX guide on FBAR vs. FATCA reporting requirements breaks down what counts as a “specified foreign financial asset” and walks through examples of each.
FBAR penalties
Following the Supreme Court’s ruling in Bittner v. United States (2023), non-willful FBAR penalties are assessed per report, not per account.
The penalty amounts are adjusted annually for inflation under 31 CFR 1010.821.
The following 3 penalty tiers apply to FBAR violations assessed on or after January 17, 2025:
- Non-willful violation: up to $16,536 (2025) per report for each annual FBAR not filed or filed incorrectly.
- Willful violation: the greater of $165,353 (2025) or 50% of the account balance at the time of the violation (31 USC § 5321(a)(5)).
- Criminal penalties: in cases of intentional evasion, fines and up to 5 years of imprisonment may apply.
What do I file? Green card tax return requirements and forms
The forms you need depend on your income sources, account balances, and whether you are claiming exclusions or credits.
The following table covers the 7 most common scenarios for a green card holder filing a tax return from abroad.
Each row matches a common green card holder filing scenario to the required core forms, additional schedules, and the key deadline:
| Your situation | Core forms | Additional forms | Key deadline |
|---|---|---|---|
| Employed abroad, no foreign accounts above $10,000 | Form 1040 + Form 2555 (FEIE) or Form 1116 (FTC) | Schedule B if interest/dividends exceed $1,500 | April 15 (auto-extended to June 15 if abroad) |
| Employed abroad with foreign bank accounts | Form 1040 + Form 2555 or 1116 + FBAR | Form 8938 if assets exceed FATCA thresholds | April 15 / FBAR: April 15 (auto to Oct 15) |
| Self-employed abroad | Form 1040 + Schedule C + Schedule SE + Form 2555 or 1116 | FBAR and/or Form 8938 if applicable | April 15 (auto to June 15 if abroad) |
| Investment income only (dividends, capital gains) | Form 1040 + Schedule B + Schedule D + Form 8949 | Form 1116 (FTC on foreign taxes paid) | April 15 (auto to June 15 if abroad) |
| First-year resident (dual-status) | Form 1040 (resident portion) + statement or Form 1040-NR (nonresident portion) | Form 2555 or 1116 for the resident period | April 15 (auto to June 15 if abroad) |
| Claiming treaty nonresident status | Form 1040-NR + Form 8833 | Form 8854 if long-term resident expatriating | April 15 |
| Giving up green card | Form 1040 (final resident return) + Form 8854 | Form 1040-NR for post-termination US-source income | April 15 (auto to June 15 if abroad for the resident portion) |
The TFX complete guide to US tax forms for expats lists every form by situation.
You can also read the TFX expat IRS tax form checklist.
Expired green card and your tax exposure
An expired green card does not end your US tax obligations – the card’s expiration date is an immigration document deadline, not a tax residency cutoff.
You remain a resident alien with worldwide income reporting obligations until your LPR status is formally terminated via Form I-407 or by USCIS/an immigration court.
TFX example – Andrea, expired green card in the UK: She moved to the UK in 2012 and let her green card expire in 2015. She assumed she was no longer a US taxpayer. In 2023, she discovered she had been a non-resident green card holder with unfiled US returns for 11 years.
Through TFX’s CPA-led Streamlined Foreign Offshore Procedure, she filed 3 years of returns and 6 years of FBARs without penalties.
Read the full case study on lapsed green cards and US tax obligations.
Exit tax for long-term residents
If you were an LPR for 8 of the last 15 tax years before terminating your status, exit-tax rules under Section 877A apply. You are a “covered expatriate” if you meet any of the following 3 conditions:
- Average annual net income tax liability over the 5 years before expatriation exceeds $206,000 (2025) – rising to $211,000 for 2026.
- Net worth is $2,000,000 or more on the expatriation date.
- You cannot certify 5 years of US tax compliance on Form 8854.
The mark-to-market regime treats most worldwide assets as sold on the day before expatriation. The first $890,000 (2025) of net gain is excluded – rising to $910,000 for 2026. Gains above the exclusion are taxed at regular capital gains rates.
The following 4 steps end tax residency properly:
The following 4 steps end tax residency properly
- File Form I-407 to abandon your LPR status.
- File Form 8854 to certify 5-year compliance and determine whether exit tax applies.
- File a final Form 1040 as a resident through the termination date.
- Switch to Form 1040-NR for any US-source income after the termination date.
The full giving up a green card: tax implications and next steps guide covers the mark-to-market calculation, Form 8854, and the compliance certification.
How to catch up on missed green card tax filings
If you have unfiled US returns from prior years, the IRS offers structured paths to get current.
The Streamlined Filing Compliance Procedures reduce penalties from as much as $16,536 per FBAR report to $0 for non-willful foreign filers.
The following 3 catch-up paths cover the most common scenarios:
- Delinquent return filing: if you missed 1–2 years and have reasonable cause, file late returns with a reasonable-cause statement. No special program needed.
- Amended returns (Form 1040-X): if you filed but omitted foreign income or failed to claim the FEIE or FTC, file an amended return to correct it.
- Streamlined Filing Compliance Procedures: for non-willful failures, file the last 3 years of income tax returns and 6 years of FBARs. The foreign offshore procedure carries no penalty. The domestic offshore procedure applies a 5% penalty on the highest aggregate balance of covered foreign financial assets over the 6-year FBAR period. Submit the required certification form – Form 14653 for foreign offshore or Form 14654 for domestic offshore, both available via the Streamlined Filing Compliance Procedures page.
TFX example – Carlos, a green card holder in Brazil: He last filed a US return in 2019. In 2026, he catches up under the streamlined foreign offshore procedure – filing returns for 2023, 2024, and 2025, plus FBARs for 2020–2025. Because his failure was non-willful and he qualifies under the foreign offshore track, his miscellaneous offshore penalty is $0.
What TFX handles for catch-up clients:
- Preparation of the last 3 years of federal returns and up to 6 years of FBARs
- FEIE and FTC optimization across all catch-up years
- Form 14653/14654 certification and reasonable-cause statements
- Form 8938 and any other international information returns
If you’ve never filed US taxes as an expat, the streamlined program is the most common starting point.
Already received an IRS notice? The approach changes – see what to do when the IRS contacts you about back taxes.
Green card foreign income tax under OBBBA
Congress enacted the One Big Beautiful Bill Act (OBBBA) on July 4, 2025, as Public Law 119-21. The law does not change how green card holders are taxed on worldwide income, and it does not alter the FEIE, FTC, or treaty framework.
It does introduce a new 1% excise tax on certain outbound money transfers effective January 1, 2026.
How the remittance tax works: a 1% excise tax applies to “remittance transfers” funded by cash, money orders, or cashier’s checks sent through a remittance transfer provider to a recipient outside the US.
The sender pays the tax; the provider collects and remits it to the IRS quarterly on Form 720.
Wire transfers from your US bank account and transfers funded by a US-issued debit or credit card are exempt. Anti-conduit rules prevent routing through intermediaries to avoid the tax.
The OBBBA also adjusted standard tax provisions for tax year 2025: the OBBB-adjusted standard deduction is $15,750 (single) and $31,500 (MFJ).
The child tax credit is $2,200 per qualifying child – higher than the pre-OBBB figures originally announced for 2025.
Green card holders abroad are affected by every OBBBA tax provision that applies to expats, from the higher standard deduction to the expanded child tax credit.
Several expat tax gaps Congress missed – including the FEIE inflation formula and totalization gaps – remain unresolved.
The IRS resource page for the One Big Beautiful Bill has official guidance as it is released.
Need help with your green card tax return?
The right level of help depends on your situation – the following 3 tiers match complexity to service:
- DIY filing: your only foreign income is a single salary, no foreign accounts above $10,000, and you have filed US returns before. Tax software that supports Form 2555 handles the basics.
- Review-only help: you have filed on your own but want a CPA to check your FEIE vs. FTC choice, verify your FBAR, or review a treaty position.
- Full-service preparation: foreign accounts, investment income, self-employment abroad, first-year or dual-status filing, prior-year gaps, or any situation involving PFICs, foreign trusts, or exit tax.
The TFX guide on when to hire an expat tax professional walks through common decision points.
The overview of TFX expat tax services shows what each package covers.
FAQs on green card holder tax filing requirements
Yes. Green card holders are classified as US resident aliens and must file Form 1040 reporting worldwide income – the same obligation US citizens have. Relief is available through the FEIE (up to $130,000 for 2025) or the FTC, depending on your income type and the foreign country’s tax rate.
Unreported foreign income can trigger back taxes, interest, and accuracy-related penalties.
Unreported foreign accounts carry separate civil penalties – up to $16,536 (2025) per report for non-willful FBAR violations and the greater of $165,353 (2025) or 50% of the account balance for willful violations (31 USC § 5321).
The IRS Streamlined Filing Compliance Procedures may reduce or eliminate penalties for non-willful taxpayers who come forward voluntarily.
Yes, in most cases. The filing requirement is based on worldwide income exceeding the standard filing threshold – $15,750 (2025) for single filers – not on whether that income comes from the US. Self-employed green card holders must file once net self-employment earnings reach $400, regardless of total income.
Yes. An expired card does not end your LPR status or your tax residency.
You must continue filing Form 1040 and reporting foreign accounts – FBAR when balances exceed $10,000, Form 8938 when specified assets exceed thresholds – until you formally abandon your green card via Form I-407 or USCIS terminates your status.
File Form I-407 to relinquish your green card, then file Form 8854 to certify 5 years of tax compliance. If you were an LPR for 8 or more of the last 15 years, exit-tax rules under Section 877A may apply. The mark-to-market exclusion is $890,000 (2025), rising to $910,000 for 2026.
At minimum, Form 1040 reporting worldwide income. Most green card holders abroad also file Form 2555 (FEIE) or Form 1116 (FTC), plus FBAR if foreign accounts exceed $10,000 and Form 8938 if specified foreign assets exceed the FATCA threshold.
No. Permanent resident taxes follow the same federal income tax brackets, rates, deductions, and credits as US citizen taxes. The final tax bill depends on income level, filing status, foreign taxes paid, and which exclusions or credits apply.
There is no fixed amount. Green card holders pay tax under the same graduated US rates as citizens.
A green card holder in a high-tax country who claims the FTC may owe $0 additional US tax. A green card holder in a zero-tax country who claims the FEIE may also owe $0 on the first $130,000 (2025) of earned income.
Your worldwide income reporting obligation stays the same. What changes is your eligibility for expat-specific provisions: you can no longer claim the FEIE or the foreign housing exclusion because your tax home is in the US. The FTC remains available for any foreign taxes you continue to pay.
You can claim both in the same year, but not on the same income. If you exclude $130,000 (2025) under the FEIE, the FTC applies only to income you did not exclude – such as investment income or earned income above the FEIE cap (IRC § 911(d)(6)).
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