Hank is a U.S. citizen and is doing a three to six-year assignment as a sales executive in Paris for a French company, which began this year. Hank earned $109,500 working for the French company this year but only lived in France for 180 days (out of 365 days). He will live full-time in France next year. What amount of Hank's $109,500 salary this year will he be allowed to exclude from gross income in the U.S? (Round your answer to the nearest one-hundred dollars).

Question

Quizplus · Accepted Answer

Hank can exclude the portion of his salary earned while he was living outside the U.S. for more than 330 days. Since he only lived in France for 180 days this year, he can only exclude the portion of his salary earned during those 180 days. His salary for the year was $109,500, and he lived in France for 180 days out of 365 days. So, he can exclude 180/365 of his salary, which is $50,351.

Hank Is a U