Turbotax definitely has a problem with it's Form 1116, Foreign Tax Credit. If you fill out your form exactly as you did in 2019, it will be rejected. After three failed attempts and reading all of the responses, here is how I was able to get my return accepted.
1. Qualified dividends and long term capital gains. When my return was first rejected, I followed Turbotax recommendation and went to deductions, foreign tax credit. To my surprise, there was an additional question, that was not originally asked by Turbotax...the amount of qualified and long term capital gains that were included in my Foreign Source income. I completed this and resubmitted. Again, rejected.
2. Date Dividends Paid. If you indicate that your dividends were paid at various times, your return will be rejected. Change this date to 12/31/2020, either in the dividend submission section or on the form itself. First try and return was accepted.
I should also note that my dividends do not come from a RIC (Registered Investment Company). I did see a lot of comments about this. I own the stock directly and thus complete the Other section in the input schedule and list the countries as Various.
Hope this helps. This is a very frustrating issue and it took several hours and all of your ideas to resolve. Not what I expected from Turbotax.
