@hlkastner , where do you see the FTC -- is this showing on schedule- 3 , line 1 ? If not something else is going on.
During your Foreign tax recognition, did TurboTax , on choosing FTC say that you will have to fill out form 1116 ? Assuming that US$500 is the Foreign taxes paid, you are filing MFJ, this amount would be under SafeHarbor. Thus there is direct FTYC without using form 1116.
I am also assuming here that your actual tax liability is larger than US$500 -- this is a non-refundable credit.
Since I cannot see your screen(s), you will have to at least confirm what I have said above. And based on that we may have to go rooting around a bit more to find the cause of this mis-behavior by Turbo.
Will circle back once I hear from you.
