I think you are correct. That's what it boils down to - my mom did not spend more than 330 days in the foreign country so she is not eligible for the exclusion. Thus, her income does not appear on line 7 and instead is on line 1 of 1040.
So now the question is: she does not have a W2 and that's what I have entered in TT. Will IRS or VA State have a problem when I file her taxes because there will not be any accompanying W2?
Thanks,
JS
