The IRS phione lines are notoriously wrong. as they are in this case.
There is no excluded income in your case, only a definition of income which reduces what is taxable.
Many have reported entire Cdn withholding tax as a deduction, without any question from IRS.
Phoning IRS other than to order a copy of a form is a complete wates of time, as you have just found out.
<i>nelsona non grata... and non pro</i>
Questions on form 1116 Please!
Moderator: Mark T Serbinski CA CPA