Does Sandeep’s daughter’s foreign income need to be reported in the U.S.?

Sandeep's daughter's foreign income needs to be reported in the U.S. because U.S. citizens and resident aliens are required to report their worldwide income, regardless of where it is earned. This obligation applies to income earned overseas unless it qualifies for exclusions or credits under specific IRS provisions, such as the Foreign Earned Income Exclusion.

While there are certain thresholds and considerations for taxation, like the potential applicability of the Foreign Earned Income Exclusion for those earning below a specific amount, the fundamental rule remains that all income must be reported to the IRS. Therefore, the correct answer reinforces the idea that U.S. citizens and residents maintain this reporting obligation, irrespective of their physical location or the amount earned.