Mr. Kim is a U.S. citizen who has been stationed at his employer’s Tokyo office for the last six years.
a. Compute Mr. Kim’s AGI if his only income was his $65,000 salary.
b. Compute Mr. Kim’s AGI if his only income for the year was his $169,000 salary.
c. Under Japanese law, Mr. Kim is a permanent resident and must pay Japanese in-come tax on his salary. Assuming that the Japanese individual tax rates exceed the U.S. rates, will Mr. Kim owe U.S. tax on any portion of his salary?