FEI-Foreign earned incomedoes not include these: Any meals given by your employer; annuity payment; or pay from working for the US government; paychecks at the end of the tax year from the services that earned income; any moving payments that are ‘recaptured’ - explained in another part; money put in a non-exempt trust.

Foreign earned income can include the following: COL allowance; family stipend; quarters allowance; and moving paybacks unless they are recaptured.http://www.vilago21.com/event/Things+you+did+not+know+about+the+foreign+earned+income+exclusion/404436/profile

FEIdoes not count towards these: Any meals provided by your employer; annuity payment; or pay from employment with the United States government; paychecks at the end of the tax year from the service that earned income; any moving payments that are ‘recaptured’ - detailed in another article; amounts that put into a non-exempt account.

Foreign earned income may include the following: cost of living allowance; family stipend; quarters allowance; and traveling reimbursements unless they are recaptured.

Earned and Unearned Income

Earned income is defined as payment for personal services performed. If, some types of income are not as easily defined. Income from a private practice or GP that shows the value of your personal work, would determine you earned income. However, any income that arose from outside funding into your business would probably count as unearned income. When outside funding makes up part of your income, one is only allowed to count up to 30% of net profits as earned income. If you receive a salary for a corporation, you are strictly allowed to count a salary that “represents a reasonable allowance as compensation for work". This aims to
eliminate Foreign earned income exclusions from any situation in which an individual purposefully sets up foreign entities to try to evade tax. Stock options often count as earned income, but strictly if it is part of an employee purchase plan. Most other stock options will almost always be treated as capital gains. See publication 525, Taxable and Nontaxable income, and consult with a tax professional.http://www.glbsocial.net/blog.php?user=vincentcochr1230&blogentry_id=150937

Professional fees, lawyer fees will almost always be treated as earned income. Income from writing is usually earned income. Rental income is complicated, but up to thirty percent can count as earned, only if it is a personal business, and determined to be more effort than just rent collecting and minor repairs. Also the use of an employers land can be calculated at fair market value, and will count as earned income.#lasturl