A taxpayer who is a bona fide resident of a foreign country for an entire tax year may:

Question

Quizplus · Accepted Answer

A taxpayer who is a bona fide resident of a foreign country for an entire tax year has the option to either exclude up to $103,900 of earned income from gross income or take a foreign tax credit for foreign taxes paid on the foreign income, or take a deduction for foreign taxes paid on foreign income. Therefore, the best choice would be to select any one of the above alternatives depending on the taxpayer's specific situation and which option would result in the greatest tax savings.

A Taxpayer Who Is a Bona Fide Resident of a Foreign