SusanY1
Expert Alumni

Deductions & credits

This is generally true, except when the income is "re-sourced by treaty".  In the absence of a tax treaty, this income would not be eligible for the foreign tax credit.  However, with a treaty that specifically addresses that the income is taxable in the resident state, it becomes "re-sourced by treaty" for purposes of determining allowable credits. 

 @stephnyc 

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