IRS Form 2555 Foreign Housing Deduction Solver

Underwrite deducting foreign apartment rent, utilities, real estate taxes, and furniture rental expenses on IRS Form 2555 in addition to the $126,500+ Foreign Earned Income Exclusion (FEIE).

Annual Foreign Rent & Location

Actual Foreign Rent & Utilities Paid ($ USD / yr)

IRS High-Cost City Housing Limit ($ - e.g. $65,000)

US Marginal Federal Income Tax Bracket (%)

Tax Deduction & Federal Cash Saved

IRS Statutory Base Housing Floor (16% of FEIE)

$20,240 Statutory Floor

Net Allowable Foreign Housing Tax Deduction

$21,760 Tax Deduction

Direct US Federal Income Taxes Slashed

+$6,963 Cash Saved