Review the following scenarios, assuming all taxpayers are U.S. citizens and the

Question

Review the following scenarios, assuming all taxpayers are U.S. citizens and the amounts presented are in U.S. dollars. Further assume the taxpayers paid U.S. income tax on the amount of income described in each scenario. Then, choose the response that best describes a taxpayer eligible to claim the foreign tax credit. Lily pays $250 in German income taxes. She is eligible to claim a refund for the entire amount, but she does not file to claim it. Angus paid $500 in income taxes to the Republic of Ireland. Carlos paid $800 in income taxes to Iran. Review the following scenarios, assuming all taxpayers are U.S. citizens and the amounts presented are in U.S. dollars. Which taxpayer is NOT required to file a Statement of Specified Foreign Financial Assets? Xander, a single taxpayer, living in the U.S., has a Canadian bank account with a balance of $51,458 at the end of the year. Tim is filing a joint return with his wife, Jane. They live in the U.S., but they have two joint accounts in the Philippines. The combined balance of both accounts was $251,489 as of June 5, 2016. Annabella, a single taxpayer living in London, has an account there with a balance of $79,123 at the end of the year. Connor is a married taxpayer filing a separate return. He lives in Australia, where he has a bank account. His balance in the account was $69,710 on July 10, 2016, and $321,123 at the end of the year.    Review the following scenarios, assuming all taxpayers are U.S. citizens and the amounts presented are in U.S. dollars. Further assume the taxpayers paid U.S. income tax on the amount of income described in each scenario. Then, choose the response that best describes a taxpayer eligible to claim the foreign tax credit.

Explanation / Answer

Review the following scenarios, assuming all taxpayers are U.S. citizens and the amounts presented are in U.S. dollars. Further assume the taxpayers paid U.S. income tax on the amount of income described in each scenario. Then, choose the response that best describes a taxpayer eligible to claim the foreign tax credit.

Answer is Lily pays $250 in German income taxes. She is eligible to claim a refund for the entire amount, but she does not file to claim it.

Because as a mentioned, Lily is eligible to claim a refund for the amount. So it's clear a taxplayer eligible to claim the foreign tax credit.

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