A bill to amend the Internal Revenue Code of 1954 to restore the tax treatment of earned income from sources outside the United States which existed before the enactment of the Tax Reform Act of 1976, and to repeal the deduction for certain expenses of living abroad.

Amends the Internal Revenue Code to restore the $20,000 exclusion from gross income (repealed by the Tax Reform Act of 1976) of income earned by U.S. citizens who are bona fide residents of a foreign country during a specified 17 month period.

Repeals provisions added by the Tax Reform Act of 1976 which allow income tax deductions for various expenses related to living abroad.