Alan is a U.S. citizen married to Maria who is a British citizen. Maria has elected to be treated as a resident alien. They have both lived in England since February 15, 2015. They do not maintain an address in the U.S. and have no intentions of returning. • Alan considers himself a resident of England. They rent an apartment at 700 Bond Street, London, UK W2SC5. • Income: | Maria has an ITIN of 911-00-XXXX, and she does not want to claim the Foreign Income Exclusion for herself. | Alan’s visa type: Unlimited | Alan works at the U.S. Embassy and has a Form W-2 for his salary. | In 2022, Alan got a job working part-time as a tourist guide. He works for the London Tourist Company located at 256 Oxford Street, London, UK, 2WSC4. Alan earned an equivalent of $6,000 in wages and paid taxes totaling $375. His taxes were paid to England as he earned his wages. | Maria works at her job as a manager for the Royal Suites Hotel. The hotel is located at 10 New Drum Street, London, UK, 1ECR3. She earned $35,000 that she already converted to U.S. currency. She states that she paid English income taxes of 2,000 Pounds. The 2022 average annual exchange rate was 1 U.S. Dollar (USD) = 0.794 Pounds. • Alan was not required to file FinCen Form 114 or Form 8938. • Alan and Maria did not itemize in 2021, and they do not have enough deductions to itemize in 2022.

12. Which of the following statements is false?

a. Alan has general category foreign income.

b. Maria can take the foreign tax credit for the English income taxes paid on her wages from the Royal Suites Hotel and has to file the Form 1116, Foreign Tax Credit.

c. Alan can claim both the foreign tax credit for the $375 income taxes paid to England and exclude the $6,000 foreign earned income from his part time job at the tourist company.

d. Alan can claim the foreign earned income exclusion of $6,000 from his part time job at the tourist company. Therefore, he cannot take the foreign tax credit for the $375 income taxes paid to England. 142

13. Alan must include the amount of foreign tax paid to England as withheld Federal income taxes.

a. True

b. False

14. Which of the following statements is true?

a. Once the election is made to exclude foreign earned income, that choice remains in effect for that year and all later years until revoked.

b. The foreign earned income exclusion is voluntary.

c. The election for the foreign earned income exclusion is made by completing the Form 2555, Foreign Earned Income.

d. All of the above

15. What is the amount of foreign taxes paid on Maria's wages, converted to U.S. dollars? (Round to the nearest dollar).

a. $0

b. $2,000

c. $2,519

d. $5,146