Foreign Earned Income Exclusion
Response to the following problem:
From March 9, 2014 until August 15, 2015 Eva is sent to London, England on a temporary work assignment. Eva's salary during 2014 is $100,000, of which $84,000 is earned while working in London. Her salary during 2015 is $125,000, of which $77,000 is earned while working in London.
a. How much of Eva's salary is taxed in 2014 and 2015? Assume the maximum foreign earned income exclusion for 2015 remains at $99,200.
b. Besides taking the exclusion for foreign earned income, what other options are available to Eva?