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

Foreign Tax Credit Workout

Skills Workout

Certification Warm Up: Drill & Practice

  1. Dorothy is a U.S. citizen who lives in Jamaica. She paid $1,500 income tax to the Jamaican government for her salaried income that she earned in Jamaica. Does this tax qualify for the foreign tax credit?
  2. Henry lives in Haiti. He paid $100 in taxes to the Haitian government. This tax was based on his type of living accommodations, the location of his residence, and the size of his family. Does his tax qualify for the foreign tax credit?
  3. Jerry lived and worked in Sudan until September of this tax year, when he was transferred to North Korea. He paid taxes to each country on the income earned in that country. Can Jerry take a foreign tax credit for the taxes paid on income he earned in Sudan and North Korea?