Melanie,a U.S.citizen living in Paris,France,for the last three years earns a salary of $110,000 in 2014.Melanie's housing costs are $24,000 per year,which is reasonable.How much can Melanie exclude from income?

Question

Quizplus · Accepted Answer

Melanie can exclude up to $99,200 of her foreign earned income in 2014 under the Foreign Earned Income Exclusion. Additionally, she can exclude a portion of her housing costs, which is calculated as the excess of her housing costs over a base amount. The total exclusion can be up to $107,328.