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. | Alans 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.

1.What is the maximum amount of foreign earned income excluded for Alan?

a. $0

b. $6,000

c. $51,460

d. $57,460

2. Maria does not have to report her wages from the Royal Suites Hotel because:

a. Form W-2 was not issued to her

b. She already paid foreign taxes to England on her wages

c. Foreign general category income is not taxable

d. None of the above. She must report her worldwide income since she is being treated as a resident alien.

3. General category income consists of income earned in a foreign country that an individual does not exclude, or excludes only part of, under the foreign earned income exclusion.

a. True

b. False

4. Which source of Alans income qualifies for the foreign earned income exclusion?

a. Wages from U.S. Embassy

b. Wages from London Tourist Company

c. Both a and b

d. None of the above

5. Alan does meet the requirements of the bona fide residence test and can exclude his foreign earned income.

a. True

b. False