Mio was transferred from New York to Germany. He lived and worked in Germany for 347...

Mio was transferred from New York to Germany. He lived and worked in Germany for 347 days in 2019. Mio's salary for 2019 is $228,800. Assume a 365-day year. In your computation, round any division to four decimal places before converting to a percentage. For example, 0.473938 would be rounded to 0.4739. If required, round your final answer to the nearest dollar. What is Mio’s foreign earned income exclusion?

Expert Solution

In the year 2019, the foreign earned income exclusion is $105,900 for the whole year of earning foreign income (maximum limit).

This should be proportionately reduced by the duration of foreign staying.

Required exclusion = Maximum limit × (347 / 365)

= (105,900 × 347) / 365

= 36,747,300 / 365

= 100,677.534

= 100,678 rounded

Answer: $100,678

ekkarill92 answered 1 year ago

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