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

Foreign Tax Credit and Completing Form 1116

Completing Form 1116

Part I (continued)

Case Study

Jaime Torres, a federal employee, received Form W-2 showing $75,000 in Box 1. He worked 300 days for that income. Of those days:

  • 135 were spent working in Puerto Rico
  • 165 were spent working in the U.S.

What should his allocation be to determine foreign source income?

Jaime Torres.