Digital Nomad
Running Your Digital Nomad Setup? Key Foreign Earned Income Rules Updated for War or Civil Unrest
IRS added countries like Ukraine, Iraq, Haiti, and Bangladesh to the list where departures during conflicts allow you to still qualify for the foreign earned income exclusion—huge for nomads displaced by adverse conditions.
By NomadicTax Research Team • 5-8 min read • November 23, 2025
## What’s New Under § 911 for Foreign Earned Income Exclusion Peacemakers
In **Revenue Procedure 2025-17**, the IRS has updated the list of countries for which people who had to leave due to **war, civil unrest, or similar adverse conditions** can receive a **waiver** for the time-based tests required under § 911(d)(4). That means the **bona fide residence test** or the **physical presence test** may be met even if you couldn’t stay long enough due to turmoil. ([irs.gov](https://www.irs.gov/irb/2025-13_IRB?utm_source=openai))
## Countries Added
The updated waiver list for **tax year 2024** now includes **Ukraine, Iraq, Haiti, and Bangladesh**. Nomads who lived in these places and had to evacuate may not meet the usual 330-day physical presence test—but can still get the foreign earned income exclusion. ([irs.gov](https://www.irs.gov/irb/2025-13_IRB?utm_source=openai))
## Why It Matters If You're a Nomad
- **Foreign Earned Income Exclusion (FEIE)**: Normally maxes out at ~$126,500 for 2024. Helps reduce U.S. tax liability on income earned abroad. But requires meeting **bona fide residence** or **physical presence test**, plus having a foreign tax home. Without the waiver, nomads leaving early can lose eligibility. ([irs.gov](https://www.irs.gov/irb/2025-13_IRB?utm_source=openai))
- **Time-based tests waived**: For eligible individuals forced to leave due to conditions beyond their control, the IRS now explicitly allows for time test waivers if your tax home and income are abroad.
## Actionable Tips for Digital Nomads
- **Document everything**: Evacuation orders, civil unrest reports, travel tickets. These will fuel your waiver claim.
- **Track days abroad carefully**: Even with waiver, other eligibility criteria must still be met.
- **Confirm tax home abroad**: If you maintain foreign residence or business operations, that strengthens FEIE eligibility.
- **Seek professional help**: Especially if income is high or if you're also filing for foreign tax credits.
## Example Scenarios
- A freelancer who was living in Ukraine in 2024 now relocated due to war. Even if they didn’t hit 330 days in Ukraine, they can still qualify for FEIE under the new waiver process.
- Someone living in Haiti whose home was destroyed and relocated early—but still has foreign tax home and foreign income—could receive FEIE thanks to this update.
## Other Considerations
- This waiver applies **only for tax year 2024** and for those who left due to **specific conditions** in those countries.
- You still need to satisfy other elements of § 911 (tax home abroad, foreign earned income) to apply exclusion.
- This update **doesn’t change amounts** of FEIE—that stays at statutory levels.
## Conclusion
For digital nomads forced out of certain countries, Revenue Procedure 2025-17 offers relief. That waiver can protect your FEIE status, even if disruption cut your stay short. If this affects you, documentation and timing are crucial—act now to claim what you deserve.