Publication 1321 (continued)

Case Study

Alda and Raul are married U.S. citizens and bona fide residents of Puerto Rico. Alda works for the U.S. government and earned $34,489 for the tax year. Raul works for a private firm in Puerto Rico and earned $25,250 annually for the tax year. They have no other income. Both are 42 years old.

Alda's income is not exempt under IRC Section 933 because she is an employee of the U.S. government. Raul's income is exempt from U.S. tax under IRC Section 933.

Use Publication 1321, Who Must File Worksheet to determine if Alda and Raul must file a U.S. income tax return.

NOTE: In this lesson, round fractions to four decimal places.