Identify which of the following statements is false.
A)The foreign-earned income exclusion is $104,100 in 2020.
B)The primary purpose for the foreign-earned income exclusion is to prevent double taxation of income.
C)A taxpayer who is physically present in a foreign country for 330 full days out of a 12-month period satisfies the bona fide foreign resident test.
D)All of the above are false.

Question

Quizplus · Accepted Answer

The statement in C is false because it describes the physical presence test, not the bona fide residence test. The bona fide residence test requires a taxpayer to be a bona fide resident of a foreign country for an uninterrupted period that includes an entire tax year, not just 330 full days out of a 12-month period.

Identify Which of the Following Statements Is False