My client is a US and Canadian citizens who resides in Canada and only has investment income from the US. My understanding is that I report all income on the US return, then take a credit for the foreign taxes paid on that income.  Do I just enter this on Form 1116 Parts I and II as dividend and interest income and enter the foreign taxes paid on these amounts or do I use Part III. The amount of foreign taxes paid is greater than the US taxes due so my client now owes no taxes on the 1040. I am concerned I have done this wrong.