The gross income you received from Canada is the $20K which goes in Part l of Form 1116. The taxes you paid on that income are entered in Part ll.
Instructions for Line 1a of Form 1116 state the following: Include income in the category checked above Part I that is taxable by the United States and is from sources within the country entered on Line i. You must include income even if it isn't taxable by that foreign country. Identify the type of income on the dotted line next to line 1a. Don't include any earned income excluded on Form 2555, Foreign Earned Income.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
