Just to clarify, overseas business trips (foreign work days) are considered foreign earned income and you can use your foreign tax credit carryover for any foreign business days.
If you are an employee and receive compensation for labor or personal services performed both inside and outside the United States, special rules apply in determining the source of the compensation. Compensation (other than certain fringe benefits) is sourced on a time basis. Certain fringe benefits (such as housing and education) are sourced on a geographical basis.
Use a time basis to figure your foreign source compensation (other than the fringe benefits discussed later). Do this by multiplying your total compensation (other than the fringe benefits discussed later) by the following fraction:
Number of days you performed services in the foreign country during the year / Total number of days you performed services during the year
Publication 514
[Edited 04.01.20 | 8:35 am]
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
