Note:

Using RTVUE, verify if Form 2555, Foreign Earned Income, was filed. In some instances a taxpayer may submit a Form 2555 without a return. Tell the taxpayer that they must file a return before we can use the Form 2555 in the withholding calculation.

The tests that must be met and amounts are covered in Pub 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad.

The foreign earned income exclusion and foreign housing exclusion do not apply to wages received by employees of the U.S. Government or an agency thereof working in a foreign country.