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It depends on several factors whether or not your wife's foreign earned income is fully excludable. 

The amount of foreign income included in the tax return will be posted to Schedule 1, line 9.

From the left menu>Federal>Wages & Income>Foreign Earned Income and Exclusion.

The series of questions that you answer could affect what is excluded. 

Questions include:

• what form or statement your foreign income was reported on
• whether the wages were paid by the U.S. government, including military wages, or earned in Cuba or other countries with U.S. travel restrictions
• When the income was earned and paid
• whether the employer provided goods such as living allowances for home, meals, transportation, or other
• where she lived-inside the U.S. or outside of the U.S.

• whether she is a U.S. Citizen or a Resident Alien

• If she met the bona fide residence or physical presence test

• if the country has a U.S. treaty
• if she paid foreign tax
• if she made any of the money while living in the United States
• if the earnings were more than the maximum foreign earned income exclusion of $105,900

When submitted, your return will include Form 2555. Please see the IRS Form 2555 Instructions for more details.

To see Form 2555 before submitting, go to the left menu>Tax Tools>Print Center and scroll the Form 2555. The name of the forms is always listed in the top left corner and bottom right corner of each page.