I notice that after passing the physical presence test for foreign income exclusion, I'm still being asked to federal tax on this amount even though it does not cross the upper limit of 105,900$. My long term capital gains place me in the 15% tax bracket for married filing jointly. I see that during the calculation for federal tax, my income is subtracted from the tax bracket lower limit effectively meaning I'm being taxed 15% for this amount as well. What am I missing?
