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3. Wendy is a single individual who works for MTP, Inc. During the entire calendar year, she works in France and pays French taxes of

3. Wendy is a single individual who works for MTP, Inc. During the entire calendar year, she works in France and pays French taxes of $8,000 on her $95,000 salary. Her taxable income without considering her salary from MTP is $10,000. Should Wendy claim the income exclusion or tax credit and how much tax does she save using the alternative selected? This is about foreign earned income. Is it better to exclude the foreign earned income or include the income and take the foreign tax credit instead?

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