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Problem 5-48 (LO. 2) George is a U.S. citizen who is employed by Hawk Enterprises, a global company. Beginning on June 1, 2022, George
Problem 5-48 (LO. 2) George is a U.S. citizen who is employed by Hawk Enterprises, a global company. Beginning on June 1, 2022, George began working in London (for a total of 214 days in 2022). He worked there until January 31, 2023, when he transferred to Paris. He worked in Paris the remainder of 2023. His salary for the first five months of 2022 was $100,000, and it was earned in the United States. His salary for the remainder of 2022 was $175,000, and it was earned in London. George's 2023 salary from Hawk was $300,000, with part being earned in London and part being earned in Paris. Assume the 2023 indexed amount is the same as the 2022 indexed amount. Assume 365 days in 2022 and 365 days in 2023. a. Is George eligible for the foreign income exclusion for 2022 and/or 2023? Both years Feedback Check My Work Congress has provided alternative forms of relief from taxes on foreign earned income. The taxpayer can elect either (1) to include the foreign income in their taxable income and then claim a credit for foreign taxes paid or (2) to exclude the foreign earnings from their U.S. gross income (the foreign earned income exclusion). Carry any fractions out to four decimal places. Round your final answers to the nearest dollar. b. Determine George's gross income in 2022 and 2023 2022: $ 2023:
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