Section 911

Section 911

Katelynn Minott, CPA & CEO profile picture
« Back to Glossary Index

Section 911 is the part of the Internal Revenue Code that allows qualifying U.S. citizens and resident aliens living abroad to elect the Foreign Earned Income Exclusion and, when eligible, the foreign housing exclusion or deduction. For U.S. expats, Section 911 is the legal basis for Form 2555.

Why it matters for U.S. expats

Section 911 can reduce U.S. income tax on qualifying foreign earned income, but it does not erase the need to file a U.S. tax return. It also does not apply to investment income, pensions, rental income, capital gains, or self-employment tax. Expats need to meet the tax home requirement, qualify under either the Bona Fide Residence Test or Physical Presence Test, and understand how the election affects the Foreign Tax Credit, Additional Child Tax Credit, Earned Income Credit, and future filing years.

Common questions

1. What is Section 911?

Section 911 is the tax law that allows eligible U.S. taxpayers abroad to exclude certain foreign earned income from U.S. taxable income and claim certain foreign housing relief.

2. What tax benefits come from Section 911?

Section 911 includes the Foreign Earned Income Exclusion, the foreign housing exclusion for employer-provided amounts, and the foreign housing deduction for eligible self-employed taxpayers.

3. Who qualifies under Section 911?

A taxpayer must have a tax home in a foreign country and meet either the Bona Fide Residence Test or the Physical Presence Test.

4. What is a qualified individual under Section 911?

A qualified individual is someone whose tax home is in a foreign country and who meets the required residence or Physical Presence Test.

5. Does Section 911 apply to U.S. citizens living abroad?

Yes. U.S. citizens abroad can use Section 911 if they meet the requirements.

6. Does Section 911 apply to resident aliens?

Yes, resident aliens can use Section 911 if they meet the requirements. Bona fide residence rules for resident aliens can depend on treaty country citizenship or nationality.

7. What income can be excluded under Section 911?

Section 911 applies to foreign earned income, such as wages, salary, professional fees, and self-employment income earned for services performed in a foreign country.

8. What income is not covered by Section 911?

Section 911 does not cover pensions, annuities, Social Security, interest, ordinary dividends, capital gains, alimony, or other investment and unearned income.

9. Does Section 911 exclude income earned while working in the United States?

No. Income is sourced where the work is physically performed. Work performed in the United States is U.S.-source income, even if the employer is foreign or the taxpayer lives abroad most of the year.

10. What is the Section 911 exclusion limit?

For 2025 returns filed in 2026, the maximum Foreign Earned Income Exclusion is $130,000. The exclusion is prorated if the taxpayer qualifies for only part of the year.

11. Can both spouses claim the Section 911 exclusion?

Yes, if both spouses have foreign earned income and each separately qualifies. Each spouse completes their own Form 2555 calculation.

12. Does Section 911 reduce self-employment tax?

No. Self-employed expats must include all self-employment income when calculating self-employment tax, even income excluded from regular income tax under Section 911.

13. Can the Foreign Tax Credit be claimed on income excluded under Section 911?

No. A taxpayer cannot claim the Foreign Tax Credit or a foreign tax deduction for foreign taxes connected to income excluded under Section 911.

14. Can Section 911 affect the Additional Child Tax Credit?

Yes. A taxpayer who claims the Foreign Earned Income Exclusion, foreign housing exclusion, or foreign housing deduction cannot claim the Additional Child Tax Credit for that year.

15. Can Section 911 affect the Earned Income Credit?

Yes. A taxpayer who elects the Foreign Earned Income Exclusion does not qualify for the Earned Income Credit for that year.

16. How is Section 911 claimed?

Section 911 benefits are claimed on Form 2555, which is attached to Form 1040.

17. Can the Section 911 election be revoked?

Yes. Once the exclusion is elected, it stays in effect for that year and later years unless revoked. If revoked, the taxpayer cannot claim the same exclusion again for the next five tax years without IRS approval.

18. What records should U.S. expats keep for Section 911?

Keep travel records, passport stamps, visas, leases, employment contracts, invoices, payslips, foreign tax records, housing expense records, exchange-rate support, Form 2555 calculations, and proof of tax home abroad.

When to get help

Professional guidance is important when:

  • You want to claim the Foreign Earned Income Exclusion.
  • You need to choose between the Foreign Earned Income Exclusion and Foreign Tax Credit.
  • You moved abroad partway through the year.
  • You are close to the Physical Presence Test day-count requirement.
  • You are unsure whether your tax home or abode affects eligibility.
  • You are self-employed and need to coordinate Section 911 with Schedule SE.
  • You have employer-provided housing, foreign housing expenses, or high-cost location limits.
  • You previously revoked the exclusion and want to claim it again.

Bright!Tax can review your Section 911 eligibility, calculate the Foreign Earned Income Exclusion and housing amount, and compare Form 2555 with the Foreign Tax Credit before you file. Get started with Bright!Tax.

Official sources

Reviewed by

Katelynn Minott, CPA & CEO

Last reviewed

July 2026

In this article

Insight meets inbox

Monthly insights and articles directly to your email inbox. Our newsletter offers substance (over spam). We promise.