06/18/2026
In a new ruling, the IRS has bolstered a couple of tax breaks available to taxpayers working abroad.
If you earn money overseas, you still must pay federal income tax on the earnings, even if you’ve remained a U.S. citizen. But Uncle Sam permits taxpayers working abroad to shelter from tax some or all of this income under a unique tax exclusion. The maximum “foreign earned income exclusion” for 2026 is $132,900 (up from $130,000 for 2025).
However, this tax break is not automatic. To qualify for the special exclusion, you must meet these three requirements:
https://www.hallassoc-cpa.com/resources/quick-reads/irs-increases-foreign-earned-income-tax-breaks