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Interview Notes Justin Herzing is a U.S. citizen, single, and has no children. He has lived and worked in England since March 20, 2013. He does not maintain an address in the U.S. and has no intentions of returning. He considers himself a resident of England. He rents an apartment at 700 Bond Street, London, UK W2SC5. Income: - Justins visa type: Unlimited. - Justin works at the U.S. Embassy and has a Form W-2 for his salary. - In 2021, Justin got a job working part time in a pub as a waiter. The pub is called the Tilted Crown and located at 256 Oxford Street, London, UK, 2WSC4. Justin earned an equivalent of $4,790 in wages and paid taxes totaling $295. His taxes were paid to England as he earned his wages. - Justin earned $215 (converted to U.S. dollars) of dividends from Rothchilds Corp. He paid foreign tax to England on these dividends in the amount of 33.0 Pounds. The exchange rate on the date he paid the tax was 1 U.S. Dollar (USD) = 0.746 Pounds. Justins dividends are not qualified dividends for U.S. tax purposes. Justin was not required to file FinCen Form 114 and he did not receive a distribution, was not a grantor of, nor was he a transferor to a foreign trust. Justin did not itemize in 2020 and does not have enough deductions to itemize in 2021. Justin received a $1,400 Economic Impact Payment (EIP 3) in March 2021.

What is the maximum amount of foreign earned income excluded from Justins tax return?

A. 0

B. 4,790

C. 46,530

D. 51,320

Justin does not have to report his dividend income from Rothchilds Corp. because:

A.Form 1099-DIV was not issued to him

B. He already paid foreign taxes to England on his dividends

C. Foreign passive income is not taxable

D. None of the above. He must report his worldwide income, which includes his dividend income.

Which source of Justins income qualifies for the foreign earned income exclusion?

A. Wages from the pub

B. Dividends from Rothchilds Corp

C.Wages from U.S. Embassy

D. none of the above

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

A. true

B. false

Which of the following statements is false?

A.Justin has both passive and general categories of foreign income

B. Justin has both passive and general categories of foreign income

C.Justin can claim both the foreign tax credit for the $295 income taxes paid to England and exclude the $4,790 foreign earned income from his part time job at the pub

D.Justin can claim the foreign earned income exclusion of $4,790 from his part time job at the pub. Therefore, he cannot take the foreign tax credit for the $295 income taxes paid to England

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

A. true

B. false

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

What is the amount of foreign taxes paid on the dividend income, converted to U.S. dollars?

A. 25

B. 44

C. 187

D.335

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