Turbotax is limiting my credit for foreign tax paid, and I think it is in error and I should be able to correct it but a bit fearful of directly editing the form 1116.
Background: Turbotax home and business 2025 desktop; foreign (passive) income and foreign tax paid via vanguard mutual fund only. 100% SE income is solely US based income.
Turbotax is lumping the entirety of my SE deductions from schedule 1 onto 1116 line b: self employment taxes, SE health insurance, SE 401k. I believe this is incorrect, because those deductions are based 100% on US income. Turbotax interview never asks me about which should be included (or I'm missing it somehow). I guess I should be able to edit in forms mode 1116 and delete the entire amount on 3b, and add an explanation that this is all US based income?
My questions:
1. Is my understanding correct and the best/only way to handle it in turbotax?
2. Why the heck wouldn't turbotax handle this correctly by asking about these deductions income source, if it wasn't clear?
appreciate any replies!
