Self-employed expats can indeed claim the FEIE if they meet the qualifications. However, it’s worth noting a couple of caveats. For one, the excluded amount will reduce your regular income tax bill, but not your self-employment tax — you will still be on the hook for Social Security and Medicare taxes.
For the 2022 tax year, these total 15.3%: 12.4% for social security, and 2.9% for Medicare.
As mentioned earlier, self-employed individuals must claim the FHD instead of the FHE on Form 2555.