I qualify for the foreign earned income exclusion, but should I take it and why? What are the pros and cons?

[abigailmdoyle]

I have lived in Europe since September 2014. I haven't filed taxes in the past couple of years. My total foreign earned income for 2016 is under $10,000 and I qualify for the Foreign Earned Income Exclusion with the physical presence test, but I can't figure out if I should file with the exclusion or not. When not applying for the exclusion I qualified for a federal refund, but now with the exclusion my refund is $0. Would it be more beneficial to file without the exclusion? My employer is foreign, no W2 form. I will most likely continue living abroad for the next few years.

[SeanE1]

I have included a few Links below that discuss the pros and cons of taking the foreign earned income exclusion and the foreign tax credit:

https://www.expattaxcpas.com/utilize-foreign-tax-credit-take-foreign-earned-income-exclusion-form-11...

http://www.goldinglawyers.com/international-tax-lawyer-foreign-tax-credit-vs-foreign-exclusion/

http://www.escapeartist.com/blog/pay-zero-tax-to-the-us-with-the-foreign-earned-income-exclusion/