Watch out guys; the IRS in currently conducting a new drive to tax the foreign income exclusion. They are now targeting the time you spend over "international waters" as taxable, no kidding, as they are now arguing international waters do not constitute a foreign country... so if you are flying long-haul world-wide, well, your exclusion might now be reduced to just a fraction of that 80000plus... and you can thank that to the mavericks out there writing those nifty brown nosing articles on the WSJ and the Chicago Tribune, way to go!