X is a U.S.citizen who lives and works in Illinois for K, Inc., a U.S.corporation.Her wages this year are $19,250.She also received $4,000 in dividends from a Japanese corporation with no U.S.source income.The Japanese corporation withheld $440, disbursing the rest to X.X is a single non-itemizer with no other income and no dependents.Her 2011 U.S.Federal income tax is

Question

Quizplus · Accepted Answer

X's total income includes both her wages and the dividends, totaling $23,250. The U.S. taxes worldwide income, so the dividends from the Japanese corporation are included. The withheld amount can be credited against her U.S. tax liability. Given the information, the correct calculation leads to a tax liability of $1,188.

X Is a USCitizen Who Lives and Works in Illinois for K, Inc