Amy is a U.S. citizen. During the year she earned income from an investment in a French company. Amy will be subject to U.S. taxation on her income under the principle of source-based taxation.
Amy is subject to U.S. taxation under residence-based taxation.

Question

Quizplus · Accepted Answer

Amy is subject to U.S. taxation under residence-based taxation, not source-based taxation, because the U.S. taxes its citizens on their worldwide income regardless of where it is earned.

Amy Is a U