Jeremy,an American citizen,earned $200,000 during 2017 while employed in Switzerland.Jeremy is entitled to the maximum foreign-earned income exclusion.Jeremy also incurred $40,000 of deductible expenses attributable to the foreign-earned income.Jeremy may deduct how much in expenses?

Question

Quizplus · Accepted Answer

C)($102,100/$200,000)× $40,000 = $20,420 is attributable to non-taxable income and may not be deducted.Therefore,Jeremy may deduct $40,000 - $20,420 = $19,580.

Jeremy,an American Citizen,earned $200,000 During 2017 While Employed in Switzerland