A) Mia, a US citizen, works for L Corp., a US corporation. On October 1, 2020, Mia accepts an international assignment to Spain. The assignment is expected to last five years. Mia will establish a residence in Spain and maintain her house in the US. She is considering renting her home in the US while she is in Spain. Also, she may travel internationally and return to the US for business meetings.

What advice would you give Mia to maximize her Foreign Earned Income Tax Exclusion during her assignment in Spain, while maintaining her home in the US and traveling?

B) In 2020, S, a US citizen, had worldwide taxable income of $120,000, including dividends of $4,000 from a German Corporation. The German Corporation withheld $400 in taxes from the dividend payment. S is a single taxpayer, and claimed the standard deduction of $12,400. If S had a US tax liability of $22,000 before credits in 2020, what is the maximum Foreign Tax Credit that S can claim?

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A To maximize her Foreign Earned Income Tax Exclusion during her assignment in Spain while maintaining her home in the US and traveling Mia should con... View the full answer