Part I (continued)

Case Study

Isidro and Barbara are U.S. citizens under age 65 who file a joint return and live in Puerto Rico. Isidro earns $30,000 from his law practice in Puerto Rico, and Barbara earns $35,000 in salary and received $1,000 in COLA from her job with the federal government.

Because Isidro and Barbara had exempt Puerto Rico source income, they allocate their standard deduction. The allowable portion of the standard deduction is $14,916. Always use four decimal points ($35,000/65,000) x $27,700).

Click here to view Isidro and Barbara's Worksheet for Puerto Rico Filers with Exempt Income.

Based on the facts given, what would you enter on each line of Part I of Form 1116, Foreign Tax Credit (Individual, Estate, or Trust) for Isidro and Barbara.

Column A	Puerto Rico
Line 1a:	?
Line 3a	?
Line 3c	?
Line 3d	?
Line 3e	?
Line 3f	?
Line 3g	?
Line 6	?
Line 7	?