Well, 411 A, the following paragraphs are under 'New' for 2006, on the Form 54 Internet edition:
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What's New
Exclusion amount. The maximum foreign earned income exclusion is now adjusted annually for inflation. For 2006, the maximum exclusion has increased to $82,400. See Limit on Excludable Amount under Foreign Earned Income Exclusion in chapter 4.
Figuring tax on income not excluded. If you claim the foreign earned income exclusion, the housing exclusion, or both, you must figure the tax on your nonexcluded income using the tax rates that would have applied had you not claimed the exclusions. See the instructions for Form 1040 and complete the Foreign Earned Income Tax Worksheet to figure the amount of tax to enter on Form 1040, line 44. If you must attach Form 6251 to your return, use the Foreign Earned Income Tax Worksheet provided in the instructions for Form 6251.
Housing expenses—base amount. The computation of the base housing amount (line 32 of Form 2555) has changed and is now tied to the maximum foreign earned income exclusion. The amount is 16 percent of the exclusion amount (computed on a daily basis), multiplied by the number of days in your qualifying period that fall within your 2006 tax year. For 2006, this amount is $36.12 per day ($13,184 per year). See Housing Amount under Foreign Housing Exclusion and Deduction in Chapter 4.
Housing expenses—maximum amount. The amount of qualified housing expenses eligible for the housing exclusion and housing deduction is now limited. See Limit on housing expenses under Foreign Housing Exclusion and Deduction in chapter 4.
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411A, are you saying these rules have been in effect the last 12 years? Interesting, if true.