Payroll department requires my foreign address to determine tax treaty benefits

How much foreign income is tax free in USA?

$108,700

The Foreign Earned Income Exclusion (FEIE, using IRS Form 2555) allows you to exclude a certain amount of your FOREIGN EARNED income from US tax. For tax year 2021 (filing in 2022) the exclusion amount is $108,700.

What states have foreign earned income exclusion?

States in this category are:

• Alaska.
• Florida.
• Nevada.
• South Dakota.
• Texas.
• Washington.
• Wyoming.

What is the foreign income exclusion for 2021?

$108,700

The Foreign Earned Income Exclusion limit for 2021 is $108,700. For 2022, the FEIE limit will be $112,000.