Jan has been assigned to the Rome office of ABC Corporation.She arrives in Rome on November 1,2011 and does not return to the U.S.until March 5,2014.During her stay in Rome,Jan earned $102,000 in 2013.Jan may exclude

Question

Quizplus · Accepted Answer

To qualify for the foreign earned income exclusion, Jan must pass either the Physical Presence Test or the Bona Fide Residence Test. Since Jan was in Rome for over 330 full days in 2013, she meets the Physical Presence Test. The maximum amount Jan can exclude for 2013 is adjusted annually for inflation and for 2013 it was $97,600. Therefore, option C is the correct choice.

Jan Has Been Assigned to the Rome Office of ABC