Hello. Me and my husband file our joint returns (MFJ) and have taxable income of USD 83K in Tax Year 2024. We also have a long term capital gain in India around USD 32K from India domestic company stock, taxable @ 10% in India (so will pay USD 3200 as tax in India). I believe that Tax in USA will be calculated as (10% till first 23200, 12% from 23201 till 83K) and for Capital gains of 32K Tax will be 0 % till (94050 - 83000) =first11050 and rest 20950 will be taxed at 15%).
Tax till 83K = 10% of 23200 + 12% of 59800 = 2320 + 7176 = USD 9496
Tax for 32K LTCG from India = 15% of 20950 = USD 3142
I have below queries on Foreign Tax Credit-:
(1) Will we get a Dollar to Dollar credit in US returns for USD 3200 or only till USD 3142?
(2) Will we be able to declare 100% or part of the Cap gain on form 1116, Sch.D and on f1040.
(3) Does above Tax calculation looks good?
(4) Can there be any additional taxes in US as calculated above?
