In 2017, Henri, a U.S. citizen and calendar year taxpayer, reports $46,000 of in

Question

In 2017, Henri, a U.S. citizen and calendar year taxpayer, reports $46,000 of income from France, which imposes a 10% income tax, and $69,000 from Italy, which imposes a 40% tax. In addition, Henri reports taxable income of $92,000 from within the United States. Henri is married filing a joint return, and he claims three dependency exemptions. Henri's U.S. tax before the foreign tax credit is $23,000.

Round any division to two decimal places and round your final answer to the nearest dollar.

Henri's foreign tax credit is $.

Explanation / Answer

Tax Credit on Income from France :

Total Income From france = $46000.00

Tax @10% equals = $46000*10/100= $4600 - A

Tax Credit on Income from Italy :

-Total income from Italy = $ 69000.00

Tax @40% Equals = $69000*40/100= $ 27600.00 - B

Adding A and B equals = $(4600+27600)= $32,200.00

Hence Foreign tax credit is equal to $ 32,200.00

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