Foreign Earned Income (and Housing) Exclusion ("FEIE")
IRC Section 911 provides that a U.S citizen or resident alien of the U.S. who is taxed on his/her world wide income, may exclude from their taxable income qualified income earned outside the U.S. up to a certain limit per individual (i.e., on a joint return, each spouse can avail themselves of the full measure of the exclusion limit) that is inflation adjusted. For 2015, the FEIE limit was $100,800. For 2016, it is $101,300. And, for 2017, it will go up to $102,100.
There is also a housing exclusion for employer- provided housing allowances.
Leonard Tuber can advise you as to how to properly utilize the mechanisms available to reduce your US tax liability with regard to foreign earned income.