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

For 2023, the Foreign Earned Income Exclusion allows U.S. citizens living abroad to exclude up to $120,000 of foreign earned income. Helen can exclude $99,200 of her salary from U.S. gross income.

Helen Is a U