Foreign Tax Credit worksheet

I am an American citizen living and working in Canada. I stupidly left my U.S. taxes (due 6/15) until the last minute, not realizing they would be far more difficult to compute on my own than my Canadian taxes. I'm trying to fill out Form 1116 -- Foreign Tax Credit. The form itself only deals with taxes paid on income earned outside of the U.S., but under the US-Canada tax treaty, you can also get a credit for taxes already paid to Canada on U.S. income, such as interest & dividends from a U.S. account. There's a worksheet at the back of the instruction booklet for Form 1116 you're supposed to use to calculate "Additional Foreign Tax Credit on U.S. Income." But there are no instructions for how to fill out this worksheet. Part I of the worksheet is pretty much self-explanatory, but I have no idea what to put in parts II and III, which read as follows:

II. Tax at source allowable under treaty > A. Items fully taxable by U.S. > 13. a. Identify > b. Multiply line 13a by line 11 > B. Items partly taxable by U.S. > 14. a. Identify > b. Treaty rate > c. Allowable tax at source (Multiply line 14a by line 14b) > 15. a. Identify > b. Treaty rate > c. Allowable tax at source (Multiply line 15a by line 15b) > 16. Total (Add lines 13b, 14c, and 15c) > C. Identify each item of U.S. source income from Col. A, Step I, on

which the U.S. >may not, under treaty, tax residents of the other country who are not U.S. citizens

> III. Additional credit > 17. Residence country tax on U.S. source income before foreign tax credit > 18. Foreign tax credit allowed by residence country for U.S.

income tax paid

Can anyone explain how to fill out this worksheet?

Thanks -- Matt

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