What is the maximum amount of foreign earned income that can be excluded from a US citizen or resident alien's gross income when working outside the US?

The correct answer is $104,100, which reflects the maximum amount of foreign earned income that can be excluded from gross income by a U.S. citizen or resident alien working abroad. This exclusion is part of the Foreign Earned Income Exclusion, a provision designed to prevent double taxation for Americans working in foreign countries. The limit is adjusted annually for inflation, and the amount of $104,100 corresponds to the threshold set for the tax year 2021.

The exclusion allows qualified individuals to reduce their taxable income significantly if they meet certain requirements, such as the physical presence test or the bona fide residence test. This is beneficial for U.S. citizens or resident aliens who live and work outside the United States, as it provides significant tax relief by allowing a large portion of their income to be excluded from taxation.

In the context of the other options, while they represent figures from previous years or are lower than the current exemption amount, they do not reflect the most recent adjustment made for inflation, which is why they are not applicable as the maximum exclusion amount for the stated tax year.