My concern is still whether to claim full amount ($300 in this case) is eligible without quoting treaty articles according to IRS guide.
I read the guide of F1116, the quote the followings:
"Foreign Taxes Eligible for a Credit You can take a credit for income, war profits, and excess profits taxes paid or accrued during your tax year to any foreign country or U.S. possession, or
any political subdivision (for example,
city, state, or province), agency, or
instrumentality of the country or
possession. This includes taxes paid or
accrued in lieu of a foreign or
possession income, war profits, or
excess profits tax that is otherwise
generally imposed. ....
U.S. citizens living in certain treaty
countries may be able to take an
additional foreign tax credit for foreign
tax imposed on certain items of income
from the United States. See Tax
On PUB514, I found the followings:
"Re-Sourced By Treaty
If a sourcing rule in an applicable income tax
treaty treats U.S. source income as foreign
source, and you elect to apply the treaty, the in
come will be treated as foreign source.
You must compute a separate foreign tax
you claim benefits under a treaty, using a separate Form 1116 for each amount of resourced income from a treaty country. See sections
865(h), 904(d)(6), and 904(h)(10) and the regulations under those sections (including Regulation section 1.9045(m)(7)) for any groupingrules and exceptions
Could you kindly confirm resourcing is not a necessary prerequisite for FTC to be claimed?