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Title: IRS Announces Updated FEIE Limit for 2026, Nationly Updates Resources

United States, 24th Mar 2026 - The Internal Revenue Service has increased the Foreign Earned Income Exclusion (FEIE) limit to $132,900 per qualifying taxpayer for the 2026 tax year, reflecting the latest round of inflation adjustments that affect Americans living and working abroad. According to Nationly, the location-tracking app for digital nomads and American expats, this change allows eligible U.S. citizens and resident aliens abroad to exclude more of their foreign salary, bonus and self-employment income from U.S. federal income tax when they qualify under the bona fide residence or physical presence tests. American taxpayers can access FEIE savings by filing Form 2555 with their annual return.The 2026 FEIE cap of $132,900 marks an increase from the 2025 limit of $130,000, continuing the annual upward trend tied to inflation indexing for key international tax thresholds. Married couples who both independently qualify for the exclusion can shield up to $265,800 in combined foreign earned income for 2026, reducing exposure to double taxation for many globally mobile professionals, contractors and remote workers.American expats and digital nomads can use the interactive FEIE savings calculator to estimate their FEIE savings under the 2026 limit and test scenarios such as changing foreign residency dates, switching filing status, or layering FEIE with housing exclusions. Nationly has updated resources on its website to allow taxpayers to plan savings under the new savings ceiling.Nation.ly is the specialized location tracking app available on the App Store for iOS built for U.S. digital nomads and expatriates who need to track physical presence test (PPT) days and keep documentation ready for FEIE claims each year. The platform automatically logs border crossings, fla...

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