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Foreign Tax Credit Considerations

Wages $($earned while living abroad$)$: $$85,000$

Qualifies for the Foreign Earned Income Exclusion

Foreign income taxes paid: $$3,800$

Interest and Dividend Income $($US$-$based$)$: $$1,500$

Itemized Deductions: $$12,000$

Allowable deduction for self$-$employment tax: None

Qualifying Children: None

Calculate:

AGI, Taxable Income

Potential Foreign Tax Credit $($consider limitations$)$

Total Tax Liability