Question

1) Don is a citizen of Great Britain and a famous race car driver. He decides to come to the U.S. to open a car dealership in Detroit. He is in the U.S. during the following periods:

2016: April 1 through August 1

2017: March 1 through August 1

Which of the following is Don's U.S. tax status for 2017?

	a.	Resident alien under the green card test
	b.	Nonresident alien
	c.	Resident alien under the substantial presence test
	d.	Citizen of the U.S.

2) During calendar years 2017 and 2018, Chris, a U.S. citizen, works for XYZ Corporation, earning an annual salary of $120,000. From July 1, 2017 through June 30, 2018, Chris works in XYZ's Paris office, and is a bona fide French resident.

What is Chris' foreign earned income exclusion for 2017?

	a.	$51,050
	b.	$0
	c.	$102,100
	d.	$51,470

3) During calendar years 2017 and 2018, Chris, a U.S. citizen, works for XYZ corporation, earning an annual salary of $120,000. From July 1, 2017 through June 30, 2018, Chris work in XYZ's Paris office, and is a bona fide French resident.

What is Chris' foreign earned income exclusion for 2018?

	a.	$51,523
	b.	$51,950
	c.	$0
	d.	$103,900

Answer 1

1) Don is a citizen of Great Britain and a famous race car driver. He decides to come to the U.S. to open a car dealership in Detroit. He is in the U.S. during the following periods:

2016: April 1 through August 1

2017: March 1 through August 1

Which of the following is Don's U.S. tax status for 2017?

Answer: A Resident alien under the green card test

2) During calendar years 2017 and 2018, Chris, a U.S. citizen, works for XYZ Corporation, earning an annual salary of $120,000. From July 1, 2017 through June 30, 2018, Chris works in XYZ's Paris office, and is a bona fide French resident.

What is Chris' foreign earned income exclusion for 2017?

Answer: C $102100

3) During calendar years 2017 and 2018, Chris, a U.S. citizen, works for XYZ corporation, earning an annual salary of $120,000. From July 1, 2017 through June 30, 2018, Chris work in XYZ's Paris office, and is a bona fide French resident.

What is Chris' foreign earned income exclusion for 2018?

Answer: D $103900

• A U.S. citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year,
• A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect and who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year.
• $103,900 for 2018
• $105,900 for 2019
• $107,600 for 2020