Q

Jack was a resident of England. He may claim an exclusion from U.S. income tax on all his foreign source income under the following conditions, EXCEPT:

1.Tax home must be in a foreign country

2.Must have foreign earned income

3.He was a resident of England for a period of 6 months.

4.He is a US citizen or US resident alien

correct answer

He was a resident of England for a period of 6 months.

explanation

To claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction, a taxpayer must meet all three of the following requirements:

Tax home must be in a foreign country

Must have foreign earned income

Must be either:

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, or

A U.S. citizen or a U.S. resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.