US filing, question on Foreign tax credit

[jhuang1213]

I am US GC holder with commuter status; my wife has employment T4 income. This year I try to use 1040 and foreign tax credit for her taxes paid in Canada. My question is:
1. Only her tax on T4 can be reported on 1116 form, correct?
2. Can she report EI, CPP, RPP or Pension listed on T4? If yes, how to report or claim?

Thanks
Jin

[nelsona]

1, no, this is not correct. you report the Cdn taxes she calcualtes on her tax return. plus cpp and ei
2. ei and cpp are included in foreign tax. the other things are not deductible.

Shouldn;t you be using 2555 to exempt her wages rather than 1116 to credit tax? this usually works better.

[jhuang1213]

Thanks, Nelsona, for your clarification. Is 2555 only for US citizen or resident? My wife does not have US GC yet. Can she use it based tax treaty "non-discrimination" clause?

[JGCA]

You do not have to be a USC to use form 2555, if you are reporting income to ther US and she lives in Canada she can use form 2555.