What you have to understand is that the foreign tax credit is only a credit on US taxes that you had to pay on this foreign source income. It is NOT a credit against US source income. That being said, there typically would not be any credit against that income for state purposes as this is a foreign "country." issue NOT a "state" issue. All the income from that foreign country that is taxed for US purposes will be likely be taxed on the state level as well. You will get the credit on the federal level NOT on the state level. If however you decide to go the route of using the foreign income "exclusion" instead of the foreign tax "credit" See HERE pg. 3 for complete details of what is better to claim. then most states will allow you to exclude that foreign income as well under certain conditions. like living abroad for 6 months etc. which doesn't sound like the case in your situation.
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