FOREIGN EARNED INCOME
If you are a U.S. citizen or a U.S. Greencard holder and you live abroad, you are taxed on your worldwide income. However, you may qualify to be excluded from income up to $102,700 (for 2017) of your foreign earnings. In addition, you can exclude or deduct certain foreign housing amounts.
To claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction, you must meet all of the following requirements.
Use this diagram from the IRS Publication 54 to check whether you can claim either Exclusion or the Deduction.