Have a Tax Question? Ask a Tax Expert
Up to $80000 of your income is eligible for the Foreign Earned Income Exclusion. This exclusion is combined with a Foreign Housing Exclusion.
These exclusions are calculated on Form 2555, which is attached to form 1040.
As for your first question: yes. The exclusions only protect 80000 of your income.
As for your second question: your being out of the country for one year is an issue. This is why you have to use Form 2555, and claim the exclusions. Otherwise, you would be claiming travel expenses on different forms, with different limitations.