Income Exclusions for Individuals

Question 1

Foreign earned income exclusion, foreign housing exclusion, foreign housing deduction

Answer 1

Must meet ALL 3 requirements:
1. Tax home must be in a foreign country
2. Must have foreign earned income
3. Must be either:
-A US citizen who’s a bona fide resident in foreign country for ENTIRE tax year
-A US resident alien who’s a citizen/national of country with a US income tax treaty for ENTIRE tax year
-A US citizen or US resident alien who is physically present in foreign country for AT LEAST 330 full days during consecutive 12
month period

Question 2

Series EE bonds

Answer 2

Tax free interest if:

• buyer at least 24 yrs old before bond’s issue date
• used to pay college costs for yourself, spouse, or dependent
• Modified AGI phase out levels S,HH, QW $83,200-98,200; MFJ $124,800-154,800

Question 3

Excludability of Employer-provided dependent care assistance

Answer 3

Exclude up to $5,000 for MFJ, $2,500 for everyone else

Special exclusion rules for 2021 ONLY, exclude up to $10,500 MFJ ( $5,250 everyone else