pk
Level 15
Level 15

Deductions & credits

@11486 , sometimes it is better to claim only the safe harbor amount of  US$600  for  MFJ filer.  You will get the full amount.  If you choose the form 1116 , it is always  going to be limited to LESSER of actual Paid  and  Allocated US tax on the same  foreign source income.  The allocation is based on multiplying the total US tax on world income by the ratio of Foreign Source income to World Income.   That is  what  the tax treaty calls out.

 

Is there more I can do for  you ?