diff --git a/ShellCheck/Checker.hs b/ShellCheck/Checker.hs
index 002ad1c..2bfdc94 100644
--- a/ShellCheck/Checker.hs
+++ b/ShellCheck/Checker.hs
@@ -147,6 +147,9 @@ prop_canSourceBadSyntax =
 prop_cantSourceDynamic =
     [1090] == checkWithIncludes [("lib", "")] ". \"$1\""
 
+prop_cantSourceDynamic2 =
+    [1090] == checkWithIncludes [("lib", "")] "source ~/foo"
+
 prop_canSourceDynamicWhenRedirected =
     null $ checkWithIncludes [("lib", "")] "#shellcheck source=lib\n. \"$1\""
 
diff --git a/ShellCheck/Parser.hs b/ShellCheck/Parser.hs
index 429daaf..912ff12 100644
--- a/ShellCheck/Parser.hs
+++ b/ShellCheck/Parser.hs
@@ -1536,7 +1536,11 @@ readSimpleCommand = called "simple command" $ do
 readSource :: Monad m => SourcePos -> Token -> SCParser m Token
 readSource pos t@(T_Redirecting _ _ (T_SimpleCommand _ _ (cmd:file:_))) = do
     override <- getSourceOverride
-    let literalFile = override `mplus` getLiteralString file
+    let literalFile = do
+        name <- override `mplus` getLiteralString file
+        -- Hack to avoid 'source ~/foo' trying to read from literal tilde
+        guard . not $ "~/" `isPrefixOf` name
+        return name
     case literalFile of
         Nothing -> do
             parseNoteAt pos WarningC 1090