@Kiki . thank you for the extra information. Now I understand the situation better.
You have foreign earnings in the form of
(1) Interest on savings --- on this since you do not have a 1099-INT, you just report as if you had received a 1099-INT --- Gross Interest earned ( US$ 320 ) and foreign taxes paid (US$65)
(2) Dividend reported on 1099-DIV -- you just enter the details as reported --- total dividends, qualified dividends, foreign taxes paid etc. etc.
If your total foreign taxes paid ( passive -- Interest, Dividends etc. ) is not more than the safe harbor amount { US$ 300 per filer i.e. US$600 for a joint filer ), just tell TurboTax that you want to use simplified method --- thus no form 1116 is required and you get foreign tax credit of upto the safe harbor amount / actual paid whichever is less.
If your total of foreign tax is more than safe harbor amount, you can indeed file the form 1116, but this will mean that whereas the filing would recognize the FULL amount of foreign taxes paid, the actual amount allowed for the current year would be base on a ratio of US tax on your foreign income and your world income. The un-allowed portion of the full foreign taxes paid is allowed to carry back one year and forward 10 years --- ( note that each year again you will use the form 1116, the same ratiometric logic would apply and must have foreign income ).
Also note that if you are having to use the form 1116, then the net rental income ( quoted as US$3500 ) can be classed as passive foreign income, thus boosting your foreign income to world income ratio.
Does this now make sense ?
pk
