@xiaoxinwu , very generally your understanding correct in that standard deduction applies, and foreign tax credit is subtracted from the US tax liability and may be zero . However there are nuances to the computation of the US taxes when foreign earned income exclusion applies --- the actual tax actually is computed based on the total world income ( including excluded income ) and then that portion of the tax that was due to excluded income is now subtracted out to get the final US tax liability. The foreign tax credit allowed and any other credits are then subtracted for the final tax position.
However , you do not have to worry over all these complications -- TurboTax generally does a very good job of doing this for you.
Is there more I can do for you ?
