Foreign Tax Credit Calculator

Compare the Foreign Tax Credit (Form 1116) vs the Foreign Earned Income Exclusion (Form 2555). See which method reduces your US federal tax bill the most for 2025.

Income & taxes paid

Foreign earned income (wages, self-employment)

Foreign passive income (dividends, interest, rental)

Other US income (US rental, investments, etc.)

Foreign income tax paid on earned income

Foreign tax on passive income

Filing status

Country of residence (tax rate context)

FTC vs FEIE comparison

2025 FEIE Limit

$130,000

Total foreign income

Total foreign tax paid

US tax before relief

Key decision factors

FTC limitation (Form 1116)

💡 Cannot use both in same year for same income. You must choose FEIE or FTC for earned income. However, you can use FTC for passive income (dividends, interest) regardless of which method you choose for earned income. Many expats in high-tax countries benefit more from FTC; those in low/no-tax countries often benefit more from FEIE.