MQ12 0403 20%

The foreign earned income exclusion is allowed under IRC Section: - 401. - 411. - 911. - 941.

- 911

Totalization agreements alleviate the burden of double taxation for which of the following taxes? - Federal income tax - Federal unemployment tax - Social security and Medicare - State unemployment tax

- Social security and Medicare

Residents of Canada or Mexico who work solely in the U.S. and commute to work from home may claim how many dependents in Step 3 of a 2020 or later Form W-4? - None - 1 only if single - 2 only if married - Their number of qualified dependents

- Their number of qualified dependents

When nonresident aliens complete a 2020 or later Form W-4, they must: - claim exempt from withholding in the space below Step 4(c). - check the Single or Married filing separately box in Step 1. - indicate their country of residence. - check the box in Step 2(c).

- check the Single or Married filing separately box in Step 1.

An expatriate employee may qualify for the foreign earned income exclusion under: - the physical presence test only. - the bona fide residence test only. - the physical presence test and the bona fide residence test together. - either the physical presence test or the bona fide residence test.

- either the physical presence test or the bona fide residence test.

The amount an employer adds to the wages of a nonresident alien is subject to: - federal income tax withholding only. - social security and Medicare taxes only. - social security, Medicare, and FUTA taxes. - no federal withholding taxes.

- federal income tax withholding only.

U.S. citizens working for U.S. companies abroad are generally subject to: - federal income taxes only. - Medicare taxes only. - federal income tax, social security, and Medicare taxes, unless specific exclusions exist. - social security and Medicare taxes only.

- federal income tax, social security, and Medicare taxes, unless specific exclusions exist.

In order to ensure an expatriate employee will not be overburdened by foreign taxes, an employer might offer any of the following tax plans EXCEPT: - hypothetical tax. - foreign tax exemption. - tax equalization. - tax protection.

- foreign tax exemption

Resident aliens working outside the U.S. are eligible for: - the same tax exemptions as U.S. citizens working abroad. - no special tax exemptions. - special tax exemptions not available to U.S. citizens. - tax exemptions only when working in their home country.

- no special tax exemptions

In determining the source of income for services performed by a nonresident alien partly inside and partly outside the U.S., compensation may be determined based on any of the following procedures EXCEPT on: - the date the employee returned to full-time U.S. employment. - the ratio of full days worked in U.S. versus total number of days worked. - the performance of specific action. - a geographic basis.

- the date the employee returned to full-time U.S. employment.