I work in the US but my spouse works for a foreign employer in a foreign country and her full income qualifies for foreign earned income exclusion. After I enter her income as foreign income and TT tells me that her full income qualifies for exclusion (also marked as such in form 2555), I see our total tax goes up significantly. Our MFJ return is otherwise pretty straightforward and we take the standard deduction if that matters. Why is my spouse's excluded income increasing our tax bill, almost by as much as if it's US-based income?
