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(3) Nancy, a U.S. citizen who is lucky enough to be bilingual, has lived full-time in Paris for the last five years. She works
(3) Nancy, a U.S. citizen who is lucky enough to be bilingual, has lived full-time in Paris for the last five years. She works in marketing for Air France. Her 2020 salary, paid in Euros, equaled U.S. $225,000, but Air France, not being a U.S. company, does not provide Nancy (or send the IRS) a Form W-2. Choose what you believe to be the best from among the above answer choices and defend your choice in 2-3 sentences. (a) Nancy probably should claim the foreign earned income exclusion on her 2020 Form 1040. (b) Nancy probably should claim the FTC (foreign tax credit) on her 2020 Form 1040. (c) Nancy is not eligible to claim the foreign earned income exclusion since Air France is not a U.S. company. (d) Nancy does not have to report her income on a Form 1040 at all because she is a French permanent resident and pays French income taxes on her salary. (e) Nancy does not have to report her income on a Form 1040 at all because she was paid in Euros. (f) Nancy does not have to report her income on a Form 1040 at all because she did not receive a W-2 (and neither did the IRS).
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