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For the foreign housing calculation, the base household expense amount is 16% of the foreign earned income exclusion ($103$108,900 700 x 16%=$16$17,624, 392 in 20182021), so housing costs of less than $16$17,624 392 are not excludible. The maximum amount of the foreign housing exclusion is limited to 30% of the foreign earned income amount ($103$108,900 700 x 30%= $31$32,170610).

• • For 20182021, housing costs in excess of $16$17,624 392 but less than $31$32,170 610 can be excluded in addition to the foreign earned income exclusion.
  • A missionary whose taxable compensation is less than $103than $108,900 700 already has all of his or her income excluded by the foreign earned income exclusion.
  • A missionary who has taxable compensation of more than $103than $108,900 700 but housing costs of less than $16$17,624 392 does not have sufficient housing costs to claim an additional exclusion for housing cost.
  • A missionary whose housing is excluded by the minister’s housing allowance already excludes housing costs from income. (There is no minimum threshold.)
  • A missionary who is required to reside on the mission’s business premises in order to perform their job (house parent at a mission school, for instance) already has the value of their housing excluded from income.
  • A missionary whose taxable compensation is more than $103$108,900700, who does not qualify for minister’s housing allowance, and whose housing costs exceed $16$17,624392, may claim an additional exclusion for housing (please consult your tax advisor for specifics).

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