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

Foreign Tax Credit Workout

Types of Income

Skills Warm Up: Types of Income

Question 1 of 3

Regina lives in a foreign country and is a U.S. citizen. She has both dividend income and interest income from countries outside the United States. Her foreign bank withholds 15% of her interest income for income taxes. She also pays foreign income taxes on her dividend income, at a rate of 45%. For the purposes of Form 1116, her dividend income should be classified as:

A Passive category income
B General category income
C Section 901(j) income
D Lump-sum distributions


Form 1116 Instructions
Pub 514, Foreign Tax Credit for Individuals

Form 1116 Instructions

Pub 514, Foreign Tax Credit for Individuals