How much salary can be excluded from gross income


Foreign Earned Income Exclusion

Response to the following problem:

From October 6, 2014 until September 6, 2015, Jack was sent to work at his employer's office in Rome, Italy. Jack's salary during 2014 was $72,000. Of this amount, $18,000 was earned while working in Rome.

a. How much of Jack's salary can be excluded from gross income in 2014?

b. How, if at all, would your answer to Part a. differ if Jack's assignment lasted until August 7, 2015?

 

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Taxation: How much salary can be excluded from gross income
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