Topic Activity

Focus on Forms

Trevor and LaVonne Garnier are married U.S. citizens, both under 65, 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
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 19 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.