Foreign Housing Exclusion

The foreign housing exclusion is the rule that may let certain qualifying taxpayers exclude or deduct part of eligible foreign housing costs, subject to specific limits.

It matters because expats often hear about the foreign earned income exclusion without realizing housing rules may also affect the result.

A taxpayer working abroad in a high-cost city may analyze whether part of housing expense qualifies for exclusion or deduction.

Ask a CPA when the term affects foreign reporting, double taxation, expat filing, or account disclosure rules.

Foreign Housing Exclusion means The foreign housing exclusion is the rule that may let certain qualifying taxpayers exclude or deduct part of eligible foreign housing costs, subject to specific limits. Foreign Earned Income Exclusion means The foreign earned income exclusion is a rule that may let qualifying taxpayers exclude certain foreign earned income from US taxation, subject to annual limits and residency tests. The difference is that they apply to different tax, accounting, or business situations and should not be treated as interchangeable.