Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Foreign Tax Credit and Completing Form 1116

Completing Form 1116

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Trevor and LaVonne are married U.S. citizens living in Puerto Rico. They plan to use the Married Filing Jointly filing status and not itemize deductions.

Their income and taxes withheld or accrued during this tax year are:

Income and Taxes Amount

Interest from a U.S. bank

$2,300

Wages from Trevor's job at a local hotel (exempt under IRC 933)

$27,500

Wages from LaVonne's job with the federal government

$32,859

LaVonne's COLA from the federal government (exempt under IRC 933)

$3,779

Income tax withheld by U.S.

$2,789

Tax liability accrued to Puerto Rico

$3,756

Click here to see their Form 1040 through line 46 and Worksheet for Puerto Rico Filers with Exempt Income.

Based on the facts given, compute Trevor and LaVonne's foreign tax credit by completing Form 1116.