Giselle is a citizen and resident of Brazil, a country with which the United States does not have an income tax treaty. Giselle earned $24,000 of compensation while working within the United States. She worked 60 days in the United States and 180 days in Brazil. How much of her compensation earned in the United States will be subject to U.S. tax?
A)$24,000
B)$8,000
C)$6,000
D)$0

Question

Quizplus · Accepted Answer

The entire $24,000 earned while working in the United States is subject to U.S. tax, regardless of the number of days worked in Brazil, because it was earned within the United States and the U.S. taxes income based on source principle.

Giselle Is a Citizen and Resident of Brazil, a Country