Form 1116 line 33 should be filled out with the amount of line 24 because I am only filing one Form 1116. It is blank. Line 35 should be the amount of the credit which is the amount I paid. It is the amount allowable instead. Am I missing something or is this correct?
That’s not necessarily correct.
The entry for line 33 of Form 1116 is to be populated by the smaller of the amounts from line 20 or line 32. It’s possible that the line 24 amount will be the same as the line 20 amount, but it’s not necessarily the case.
Line 35 would then be the amount from line 33, adjusted by any reduction of credit for international boycott operations.
See the 2021 Instructions for Form 1116, and the form itself, linked above.
The problem turned out that the numbers were confusing because the allowable was twice the amount paid and it appeared as if the allowable was being used as the credit. It turned out that TurboTax was picking up the paid amount twice (doubling it). Somehow in all the 1-1/2 hour consultation with TurboTax, the problem resolved itself and we moved on. Thanks for your input.