A taxpayer meets the test to be considered a bona fide resident of Egypt and excludes $75,000 of earned income from their federal return. Before their exodus from the U.S., they were a California resident. Assuming that they have a filing requirement for the State, does this excluded income become included or not? (Look at the explanation as much as the answer.) The $75,000 is added back to state income, because the State does not conform to the exclusion of foreign earned income. The $75,000 is excluded, but only barely, since the amount of exclusion for the State is less than the federal amount. The $75,000 is added back to state income, because the State only allows the exclusion for specific countries, and Egypt isn't one of them. The $75,000 is excluded because the State doesn't tax worldwide income