22.5 Foreign Earned Income Tax Worksheet

If you claim the foreign earned income exclusion on Form 2555 or Form 2555-EZ, or the foreign housing exclusion on Form 2555, you must figure your regular tax liability using the Foreign Earned Income Tax Worksheet in the Form 1040 instructions. The worksheet computation must be used because of the rule requiring non-excluded income to be “stacked” on top of the excluded income, so that the non-excluded income is subject to the same tax rate or rates that would have applied had the foreign exclusions not been elected.