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For the foreign housing calculation, the base household expense amount is 16% of the foreign earned income exclusion ($102$104,100 x 16%=$16,336656, in 20172018), so housing costs of less than $16,336 656 are not excludible. The maximum amount of the foreign housing exclusion is limited to 30% of the foreign earned income amount ($102$104,100 x 30%= $30$31,630230).

• • For 20172018, housing costs in excess of $16,336 656 but less than $30$31,630 230 can be excluded in addition to the foreign earned income exclusion.
  • A missionary whose taxable compensation is less than $102than $104,100 already has all of his or her income excluded by the foreign earned income exclusion.
  • A missionary who has taxable compensation of more than $102than $104,100 but housing costs of less than $16,336 656 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 $102$104,100, who does not qualify for minister’s housing allowance, and whose housing costs exceed $16,336656, may claim an additional exclusion for housing (please consult your tax advisor for specifics).

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