Generally, a U.S.citizen who has foreign-earned income should elect the earned income exclusion when the U.S.effective tax rate exceeds the foreign effective tax rate.

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This is because the earned income exclusion allows individuals to exclude up to a certain amount of foreign-earned income from their U.S. taxable income, which can lower their overall U.S. tax liability. If the U.S. effective tax rate is higher than the foreign effective tax rate, it makes sense to take advantage of this exclusion.