Can Snowbirds Use the Foreign Earned Income Exclusion? The 330-Day Rule
Usually not on a winter-only stay. The Foreign Earned Income Exclusion (FEIE) lets a qualifying U.S. citizen exclude up to $132,900 of foreign earned income for 2026, but only if you pass the physical presence test (330 full days outside the U.S. in any 12 consecutive months) or the bona fide residence test, and you have a foreign tax home. A snowbird who spends four to six months in the Philippines will not reach 330 days. The exclusion also covers earned income only: wages and self-employment, not pensions, Social Security, dividends or rental income. General information, not tax advice. Updated October 13, 2026.
The two tests
| Test | Requirement | Fits a winter-only stay? |
|---|---|---|
| Physical presence | At least 330 full days in foreign countries in any 12 consecutive months | No |
| Bona fide residence | Resident of a foreign country for an entire tax year, judged on facts and ties | Unlikely |
Full days run midnight to midnight, and days in U.S. airspace or international waters do not count. Both tests also require a foreign tax home. You claim the exclusion on IRS Form 2555.
What snowbirds use instead
- Foreign tax credit (Form 1116) for income tax paid to the Philippines on income that Philippines taxes.
- The U.S.–Philippines income tax treaty, which reduces withholding but does not stop U.S. tax on citizens. See what the treaty does and does not do.
- Your state domicile. Each state has its own test for where you live; a mailing address in a no-income-tax state is not enough on its own. Ask your CPA before you rely on it.
For the property side, see our tax strategy guide.
More answers
- Best Time to Live in the Philippines to Escape U.S. Winter
- Does Medicare Cover You in the Philippines? What to Do Instead
- How Long Can an American Stay in the Philippines? Visa-Free, Extensions, SRRV
- Is There a U.S.–Philippines Tax Treaty? What It Does and Doesn’t Do
- How to Check If a Philippine Condo Is Still Open to Foreign Buyers (40% Cap)
- Cost of Living in the Philippines for a Retired Couple in 2026
Sources: KPMG flash alert 2026-090 (2026 FEIE amount); IRS Publication 54 and Form 2555 instructions (tests); Taxes for Expats physical presence test guide; Greenback Tax Services. Confirm your situation with a licensed cross-border CPA. Current as of October 2026.
Frequently asked questions
What is the FEIE limit for 2026?
$132,900 per qualifying person. If both spouses qualify separately, each can claim up to that amount.
Does the FEIE cover Social Security or pension income?
No. It applies to earned income only: wages and self-employment income.
Does the FEIE reduce self-employment tax?
No. It reduces U.S. income tax, not self-employment tax.
Do U.S. citizens in the Philippines still file U.S. taxes?
Yes. U.S. citizens file on worldwide income wherever they live.
