A US Citizen, Who Uses a Calendar Year as His Tax

question 54

Multiple Choice

A U.S. citizen, who uses a calendar year as his tax year, is transferred to a foreign country by his employer. The U.S. citizen arrived in the foreign country on November 3 of last year. Residency is expected to be maintained in the foreign country until August 4 of next year. None of the years are a leap year. The first year for which an earned income exclusion can be claimed is

• A)last year.
• B)the current year.
• C)next year.
• D)The earned income exclusion cannot be claimed.

---

Definitions:

Seniority Based Pay

A compensation system where employees' wages are determined by the length of service in a company or organization.

Enterprise Unionism

A form of unionism in which workers organize into unions on a per-company basis, rather than by trade or industry.

Former Soviet Union

Refers to the socialist federation that existed from 1922 to 1991, comprising several republics including Russia, Ukraine, and others, which disbanded to become independent countries.

U.S. Labor Relations

The interaction between labor unions, employers, and the government in the United States, focusing on the negotiation and enforcement of labor contracts and the rights and obligations of parties in the workplace.