Welcome to our FEIE blog series. Our goal is to provide clarity among dozens of the most popular expat countries across the world. Take some time to read about the ways the FEIE affects many countries.
What is the Foreign Earned Income Exclusion (FEIE)?
The Foreign Earned Income Exclusion (FEIE) is a U.S. tax benefit that allows qualifying U.S. citizens and green card holders to exclude up to $126,500 (in 2025) of foreign-earned income from U.S. taxation. This program was created to help reduce the burden of double taxation for those living abroad. It’s one of the most important tools for avoiding double taxation.
To qualify, you need foreign-earned income, a tax home outside the U.S., and either the Physical Presence Test (330 full days abroad in 12 months) or the Bona Fide Residence Test.
Why is FEIE used?
Because the United States taxes its citizens on worldwide income, expats often face taxation from both countries they’re tied to. The FEIE helps ease that financial burden by excluding a large amount of income earned abroad, ensuring you don’t pay taxes twice on the same income.
For those who still owe foreign taxes, pairing FEIE with the Foreign Tax Credit (FTC) can further increase your savings.
Stay tuned for our next series on whether the FEIE or FTC better fits your situation.
How FEIE works for expats living in Belarus
While Belarus isn’t the most popular expatriate destination, there are still expats there that could use this information. If you’re living and earning in Belarus, the FEIE can be very useful. Belarus operates on a flat tax system, making it a little simpler than many European countries. Residents typically pay a 13% income tax, while non-residents are taxed only on income earned within the country.
- Tax residency: You’re typically considered a resident if you stay in Belarus for over 183 days within a calendar year
- Double taxation: The U.S. and Belarus do not have a tax treaty. As of December 17, 2024, the official IRS website shows the treaty has been suspended. Utilizing the FEIE and FTC are going to be the most beneficial relief to your income tax at this time.
- Example:
An American teacher earning $60,000/year in Minsk could qualify for the FEIE under the physical presence test, excluding that income from U.S. taxation entirely. Better yet, since Belarus’s local taxes are relatively low, this setup keeps your overall tax bill manageable on both sides.
Extra tips for You
- Belarus’s inflation and currency controls can affect how you’re able to manage your money so be sure to keep all income and tax records between USD and BYN (Belarusian Ruble).
- Remember to file with FBAR/FATCA if you have more than $10,000 worth in a foreign account.
- Keep a keen record of your travel days going in and out of Belarus to maintain FEIE eligibility.
Careful planning is essential
Living in Belarus can feel like stepping into a historic crossroads between Europe and the post-soviet world. The country encourages you to slow down and enjoy the moment with their cozy cafes, friendly locals, and interesting history. The FEIE helps make that experience even smoother by keeping U.S. taxes low. Spend more time exploring and less time doing taxes!
Contact us today to get help with your U.S. expat tax filing
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