Most US digital nomads don’t realize this, but the IRS lets Americans working abroad exclude up to $132,900 of earned income from federal taxes in 2026 — legally.
In this video, we break down the NEW 2026 Foreign Earned Income Exclusion (FEIE) amount, how it works, who qualifies, the difference between the Physical Presence Test and the Bona Fide Residence Test, and exactly how US nomads can reduce their tax bill to almost zero.
You’re about to learn:
• How the FEIE increased to $132,900 in 2026
• The 330-day rule explained simply
• The Bona Fide Residence test vs Physical Presence test
• How FEIE + Foreign Tax Credit = extremely low tax
• The truth about self-employment tax (most people get this wrong)
• Best countries for using FEIE as a digital nomad
• Common mistakes that trigger IRS audits
• Real examples and scenarios for 2026
Perfect for remote workers, freelancers, contractors, expats, and any US citizen earning income abroad. However, if you spend more than 122 days per year in any single jurisdiction, you could become liable for taxation in that jurisdiction. Now depending on your objectives, this may not be a desirable outcome. Interestingly enough, most jurisdictions will grant you a 90 day stay for tourist or business purposes. Thar’s a little over 12 weeks and if you stick to that, you could rotate between four jurisdictions every year and go home for about a month around the holidays.
Now the logistics of doing this, year on year, will become challenging over time. A done for you solution would be ideal and that is exactly what we’d like to introduce to you. Click to learn more.
