Worldwide Income Subject to Tax. T, a U.S. citizen, has income that was earned outside the United States. The income was $20,000, and a tax of $2,000 was paid to the foreign government. Determine the general treatment of this income and the tax paid under the following circumstances: The tax paid was on income earned on foreign investments, and the U.S. tax attributable to this income is $2,800. Same as (a), except the U.S. tax attributable to this income is $1,800. Same as (a), except the income is from services rendered while absent from the United States for 13 successive months. In order to solve parts A & B you need to know the following: Foreign income taxes paid can be claimed in full on a U.S. income tax return, as a FTC against U.S. tax liability,

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Facts of the case Mr T a US citizen earned an income of 20... View the full answer