Expat Tax Quiz




Do you think you are up to the task of preparing your own expatriate tax return? We have written an article outlining the reasons why you should consider having this done by a professional - Why Hire a Pro. But don't take our word for it - test your knowledge by taking this quiz.

1. Jane moved to France on September 1, 2011. Her total foreign salary for 2011 was $30,000. What is the maximum amount of foreign earned income Jane will be able to exclude on her 2011 tax return?
  1. $0
  2. $10,000
  3. $30,000
  4. $92,900
2. Bob spent the entire 2010 year in Tokyo. His annual salary was $90,000 and he paid $30,000 rent. What is the total amount of foreign earned income and foreign housing expenses Bob can exclude?
  1. $90,000
  2. $91,500
  3. $106,400
  4. $120,000
3. Tim lived in Geneva through the entire 2010. He received a salary of $100,000, a car allowance of $5,000, and $40,000 employer housing assistance. What amount will be shown on line 7 of form 1040 (wages, salaries, tips, etc.)?
  1. $100,000
  2. $105,000
  3. $140,000
  4. $145,000
4. What is the maximum amount of foreign earned income earned by Tim from Question #3 that can be excluded on form 2555?
  1. $91,500
  2. $100,000
  3. $145,000
  4. None of the Above
5. Alex graduated from college and took off to Europe. He worked 2 months as a lifeguard in Portugal, 2 months waiting tables at a small restaurant in Italy, and 2 months teaching English in Greece. He earned 20,000 Euros and spent the rest of the year exploring the world. He returned to the United States 13 months after the graduation. Which test for the purpose of foreign earned income exclusion does Alex meet?
  1. Physical Presence Test
  2. Bona Fide Residency Test
  3. Traveler Test
  4. Not eligible for the foreign income exclusion
6. Peter is self-employed in Japan. He makes contributions to the Japanese Social Insurance system. How much of U.S. self-employment tax should he pay on his foreign self-employment income?
  1. Full amount of U.S. self-employment tax
  2. Difference between the deemed amount of U.S. self-employment tax and the amount actually paid in Japan
  3. No U.S. self-employment tax is due
  4. None of the Above
7. Karl and Klara are a married couple living in Spain. Karl earns $90,000 and Klara earns $120,000 a year. The annual rent on their apartment in Spain is $36,000. How should they apply housing exclusion on forms 2555?
  1. Karl should take the housing exclusion
  2. Klara should take the housing exclusion
  3. They should split the exclusion evenly
  4. They should take prorated exclusions based on their salaries
8. Andrew lives in Sweden and makes $120,000 a year. He paid $35,000 income tax on his salary in Sweden. Andrew excluded $100,000 of foreign earned income and housing expenses. How much of foreign tax credit can he apply towards the remaining earned income?
  1. $35,000
  2. $17,500
  3. $0
  4. The amount of the U.S. tax due on the remaining $100,000
9. Sylvia is a single mother living in Argentina with her 5-year old daughter. Sylvia earns $28,000 a year. Can she receive an earned income credit?
  1. Yes, if she does not exclude her foreign income
  2. Yes, if the child has a U.S. social security number
  3. No, because her income is too high
  4. No, because Sylvia and her daughter live outside the U.S
10. How to apply a foreign tax credit for foreign tax paid inside an IRA?
  1. As a foreign tax credit on passive income
  2. As a foreign tax deduction on Schedule A
  3. This foreign tax is non-deductible
  4. No taxes are paid inside IRA