U.S. citizen who has a calendar tax year establishes a tax home and residence in a foreign country and qualifies for the foreign-earned income exclusion for 60 days in 2017; 365 days in 2018; and 60 days in 20189 The maximum earned income exclusion for 2019 rounded to the nearest whole number is?

Question

Quizplus · Accepted Answer

To determine the foreign-earned income exclusion for 2019, we need to look at the number of days in each year that the taxpayer qualifies for the exclusion. In this case, the taxpayer qualifies for the exclusion for a total of 480 days (60+365+60). To calculate the maximum exclusion for 2019, we would prorate the maximum exclusion amount ($105,900) by dividing it by 365 and then multiplying it by the number of days the taxpayer qualifies for the exclusion in 2019 (60):

$105,900 / 365 * 60 = $17,094.52

Rounded to the nearest whole number, the maximum exclusion for 2019 is $17,113.

US Citizen Who Has a Calendar Tax Year Establishes a Tax