Yes, I believe we are in agreement w/ that IRS link. Your FEI is at the bottom of the stack, other income is on top. The FEIE eliminates the tax on the bottom stack but that FEI income stays there as a placeholder to determine the higher rates on the top stack of other income.
Somewhere in the IRS forms/instructions there should be some words describing the mechanics of doing the calculation more explicitly.
- This reply was modified 2 years, 4 months ago by kaneohe.