In 2017, Henri, a U.S. citizen and calendar year taxpayer, reports $52,000 of in

Question

In 2017, Henri, a U.S. citizen and calendar year taxpayer, reports $52,000 of income from France, which imposes a 10% income tax, and $78,000 from Italy, which imposes a 40% tax. In addition, Henri reports taxable income of $104,000 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 $26,000.

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

Henri's foreign tax credit is $.

Explanation / Answer

Calculation of Henri's foreign tax credit :-

52,000+78,000= 130,000

104,000+(78,000*0.4)=104,000+31,200=135,200

1,30,000/135,200=.96*26,000=24,960

Henri's foreign tax credit comes to $24,960

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