Helen is a U.S. citizen and a CPA who moved to London, England, three years ago to work for a British company. This year, she spent the entire year in London and earned a salary of $110,000. How much of her salary will she be allowed to exclude from gross income in the United States?

Question

Quizplus · Accepted Answer

Helen can use the Foreign Earned Income Exclusion to exclude a portion of her salary from U.S. gross income. For the tax year 2021, the maximum exclusion amount is $107,600. This amount is adjusted annually for inflation, but based on the provided options, $107,600 is the correct choice that aligns with the known exclusion limits.

Helen Is a U