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Suppose an American qualifies for the foreign earned income exclusion. He earned $125,000 in 2013 and received a 2013 $50,000 housing stipend, for a total of $175,000 in remuneration.
As I understand, I can exclude up to $97,600 under the foreign earned income exclusion, and may also receive the foreign housing exclusion. How is the housing exclusion calculated?
I live in London. According to http://www.irs.gov/instructions/i2555/ch02.html#d0e542, up to $88,200 can be excluded for London. Does this mean I can exclude $97,600 plus the $50,000 housing stipend (for a total of $147,600) or does it mean I can exclude $97,600 plus $88,200 for housing (for a total of $185,800)?