well I noticed that in a detailed view, the foreign earned income tax worksheet is checked.
I am filing F 2555 and thought the entire foreign income earned is eligible for exclusion. However, it appears that the total tax is calculated based on taxable income including foreign earned income and then a deduction for this foreign earned is provided later.
In other words, 1040 line 10 shows 100,000 but tax is calulated on 120000 and then the tax amount is reduced by tax on 20000!
