Hello everyone,
This is my first year filing the US tax returns and one of the challenging I am facing is around Foreign Tax Credit.
In 2019 I paid approx. $2,000 of income taxes in France.
When I am creating Form 1116, the result is a credit of approx. $900.
I thought the difference was coming from the fact that the credit could not be more than what my taxes on those incomes in the US would be, but it turns out that those incomes, when entered in TT, Schedule E, generate approx. $1,300 of additional taxes.
As a consequence, I am a bit loss about how this credit logic works and why I am not getting back at least the equivalent $1,300 ?
Thanks a lot in advance for your help.
