My report was misunderstood. I did not enter (Social Sec, line 1b); Line 1b was automatically set by TurboTax. TurboTax assumed that I had lived abroad for the entire year (Social Sec line 1b was the same as Social Sec line 1a). This is an additional bug by TurboTax.
Social Sec, Line 1b was automatically set during the Step-by-step dialog for
"Do you now want to try using the foreign tax credit...?"
under
Deductions & Credits > Foreign Tax > Start/Update.
This question is asked when a 1099-DIV includes Foreign tax paid (box 7).
I answered 'Yes' and the dialog asked for the country. Since 1099-DIV does not list this information, I exited the Step-By-Step dialog and returned to 'Forms View'. The taxable amount for Social security benefits (Form 1040, Line 6b) was automatically set to $0. There was no warning that Form 1116 (Foreign tax credit) was missing.
