The foreign income exclusion is not considered income for FAFSA (I have no clue for CSS Profile). It’s essentially zeroed out on the US tax return that a citizen working in a foreign country files (that is, it is not considered taxable income on the tax form). It does not get reported as untaxed income on FAFSA, although any foreign income not earned from work is reported in untaxed income. This is one of those things that I always thought didn’t make sense, but it is what it is.