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Which of the following circumstances would favor the foreign earned income exclusion over the foreign tax credit? * 1. Income is subject to a high
Which of the following circumstances would favor the foreign earned income exclusion over the foreign tax credit? |
*
1. | Income is subject to a high tax rate in the foreign country. |
2. | Income is too high to qualify for either the full exclusion or the full credit. |
3. | 30% of foreign income is considered earned; the other 70% is investment income. |
4. | Income is subject to a low tax rate in the foreign country. |
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