OK , as I understand from your post, you entered all the details into TurboTax desktop version. A point to note is that if the foreign tax is less than $400 ( from 1099-DIV / INT etc. ) then you just have to tell TurboTax that you want tax credit and it should fill out the credit. On the other hand if you declare more than this amount , TurboTax will opt for form 1666 --- this allows for recognition of larger amounts but then the allowable credit is based on a ratio of foreign income to world income -- thus if you have say 99% US based income and only 1% in foreign income, your allowable foreign tax credit for the year will be approx 1% of the total recognized foreign tax paid. Also note that penalties or other assessments , even though passed through by the broker are not eligible for foreign tax credit ( limited to tax on income ONLY ) -- so if your broker had to pay fines/assessments to NL, then this can only be used to reduce your basis on the asset/investment, not treated as foreign tax.
Does this help ?
