TurboTax asked you whether you whether you want to take an itemized deduction or a credit for the foreign tax. Your original question said that the foreign tax showed up later in the interview under generation-skipping tax. That's the itemized deduction. The itemized deduction for foreign tax paid does not use Form 1116. The deduction appears on Schedule A line 6.
If you choose the foreign tax credit, Form 1116 is used to calculate the credit. The credit from Form 1116 line 33 flows to Schedule 3 line 1.
It's not clear what you did when you entered the foreign tax multiple times, or why it seemed to keep disappearing. You might have been switching back and forth between the itemized deduction and the credit without realizing it.
The best suggestion I can give you regarding TurboTax is to go through the questions slowly, read every word on every screen very carefully, and make use of the help links. Make sure all your answers are accurate. The itemized deduction is fairly simple, but the credit requires a lot of information for Form 1116 and can be very confusing. That's because the tax rules are complex and confusing.
You might want to call TurboTax support for help, or consult a local tax professional, but you are not likely to be able to reach either of those on the day of the filing deadline, which is tomorrow (Wednesday, July 15). Perhaps you should file an extension so that you can take more time to work out the foreign tax problems.
@nvshah9 wrote:
I don't know why. On form 1116, it shows final number as 0 that should be reported on 1040 line 46.
There is no line 46 on Form 1040. Form 1116 does not say that the credit goes on Form 1040 line 46. It says it goes on Schedule 3 line 1 or Form 1040-NR line 46. Form 1040-NR is not the same as Form 1040, and it is not supported in TurboTax. You are not filing Form 1040-NR.
