Liang, an NRA, is sent to the United States by Fulston Corporation, her non-U.S. employer. She spends 50 days in the United States and earns $20,000 for a two-month period. This amount is attributable to 40 U.S. working days and
10 non-U.S. working days. Fulston does not have a United States trade or business, and Liang spends no other time in the United States for the tax year. Liang's U.S.-source taxable income is:

Question

Quizplus · Accepted Answer

Liang's U.S.-source taxable income is calculated based on the days she worked in the U.S. relative to her total working days. Since she worked 40 days out of a total of 50 in the U.S., her U.S.-source income is 40/50 of the $20,000, which equals $16,000.

Liang, an NRA, Is Sent to the United States by Fulston