@xrywzy the housing help that you get from the employer is viewed as part of the benefits ( in kind / cash ) of the job. Thus when you exclude the foreign income, you can include the housing benefit that you get ( i.e. the difference between FMV and employer help). This is because for US tax purposes, the wages/earnings, cash benefits, benefits in kind etc. are all viewed as taxable income. So this way if you are able to exclude the earnings plus the housing help as foreign earned income, then it reduces you tax burden ( for US purposes ).
Does this make sense ?
pk
