I pay a small amount of foreign tax that is reported on a 1099-DIV, box 7. I entered this amount in the step-by-step, Personal Income/Dividend "Box 7 foreign tax paid".
The amount is well under the $300 threshold, and thus the IRS allows this amount to be reported on Sch. 3, line 1 "Foreign tax credit". TurboTax correctly created this schedule. In other words, no Form 1116 is required.
Nevertheless, TurboTax (H&B desktop) has flagged this foreign tax credit as an unresolved issue, still wants me to enter the data for Form 1116 through "Check This Entry", and apparently wants me to fill out the entire Foreign Tax Credit Comp Worksheet. TurboTax knows it compiled Sch. 3, it knows that there will be no carryover to future years from my Form 1040 entries (and thus again, no need for Form 1116), so why does it want user to go through a bunch of extra steps to complete Form 1116?
More importantly, is there a workaround so it will stop flagging Form 1116 as "incomplete", without user having to complete the Form 1116 worksheet and form? Since it already completed Sch. 3, should I just delete Form 1116 in the Forms menu? TIA for any help.
