@SusanY1 Thank you for your explanation. I'm trying to reconcile your explanation with information I found in IRS "Instructions for Form 2555" (IRS Link). Under the section "Physical Presence Test", it states
"Note. A nonresident alien who, with a U.S. citizen or U.S. resident alien spouse, chooses to be taxed as a resident of the United States can qualify under this test if the time requirements are met. See Pub. 54 for details on how to make this choice."
This seems to suggest that a nonresident alien spouse who makes the election to be treated as a U.S. resident may qualify FEIE if the Physical Presence Test requirement are met. Is my understanding correct or am I missing something?
