@TurboTaxCaro, I found the link to Put. 54 in the instructions for the form 2555 that you attached :). Thanks!

The following guide was very helpful to me <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p54.pdf">https://www.irs.gov/pub/irs-pdf/p54....

Your explanation makes sense to me. Is there an IRS page specifying the exact rules for calculating that number? I couldn't find one.The article that you linked...