Final answer:
The question pertains to Henri's tax situation involving income from France, Italy, and the U.S., and how the foreign tax credit applies to offset his U.S. tax liability for the income taxed abroad.
Step-by-step explanation:
The question involves understanding the basic concepts of taxation, specifically in the context of how foreign income and domestic income are taxed for a U.S. citizen and how the foreign tax credit can be applied. For Henri, a calendar year taxpayer, with income from France and Italy, as well as from the United States, the calculation of tax liability requires an understanding of international tax agreements and the U.S. tax code, in particular the foreign tax credit, which can offset some of the tax due on foreign income.
Henri's total taxable income would consist of both his foreign income and his U.S. income. U.S. citizens are taxed on their worldwide income. However, to prevent double taxation (being taxed by both the U.S. and the foreign country), the foreign tax credit allows taxpayers to decrease their U.S. tax liability by the amount paid to foreign governments. This is subject to various limitations and the calculation can be complex. With the foreign income and the percentages of income tax Henri pays to France and Italy reported, one would need to calculate the allowable foreign tax credit to determine how it affects his overall U.S. tax liability.