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Deductions & credits
Yes, this is correct. You cannot exclude her income under the FEIE because she is not a citizen or resident alien. She is only treated as a resident alien for tax purposes, which is not the same thing.
She is not eligible to claim a foreign tax credit unless she receives effectively connected income, which is income that is effectively connected with the conduct of a U.S. trade or business.
Non Resident Alien-Figuring Your Tax
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March 1, 2024
6:25 AM