Merits: In general, filing an exclusion means getting more income from that foreign country
De-Merits: Carry-back or carry forward option is not available. This exclusion is available only for earned income and doesn’t apply to passive income. If you choose to revoke Foreign earned income exclusion, then you will not be able to claim the exclusion for the next 5 years. To file exclusion, we will have to submit a proper explanation statement to the IRS