Helen is a U.S.citizen and 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 U.S.?

Question

Quizplus · Accepted Answer

According to the foreign earned income exclusion for tax year 2021, Helen can exclude up to $108,700 of her foreign earned income from gross income in the U.S. However, since she earned $110,000, she can only exclude up to the maximum amount of $108,700. Therefore, the answer is B) $103,900 ($110,000 - $6,100 for the foreign housing exclusion).

Helen Is a U