Tax paid in Canada on income excluded using 2555

[NewCanadian]

Hello Nelsona,
We are correcting US taxes using 1040X. Would like to verify from you.

1) Spousal income in Canada for part year residence was excluded from 1040 using 2555. Therefore tax paid in Canada on this income also needs to be excluded from US tax credit.

However, whatever tax she paid using part year 216 return for rental income can be claimed using 1116. Is that correct approach?

[nelsona]

Only earned income (like wages or self-employed income) can be excluded using 2555, rental income is not considered earned income.

So to tehextent that she paid tax in the first part of the year in canada on incoem that was not excluded, thta can be used as foreign tax credit.

Looks like you may be making moeew changes to your return.