Foreign Tax Credit

A U.S. taxpayer earns income from both U.S. and foreign sources and pays income tax to a foreign government. Which of the following limits the amount of foreign tax credit that may be claimed?

1. The taxpayer’s adjusted gross income
2. The taxpayer’s marginal tax bracket
3. The amount of U.S. tax attributable to foreign-source income
4. The taxpayer’s taxable income before credits