Agreeing with @Anonymous , you should note that while your foreign taxes paid is recognized $ for $, the allowable amount for the year is based on the ratio of your foreign income to world income, the rest of the amount of foreign tax is eligible for carry back and carry forward. So sometimes , even if the foreign taxes paid is above the safe harbor amount ( $300 for single and $600 for married filing joint ), you may be better served by claiming ONLY the safe harbor amount. This of course is dependent on your specific circumstances and facts, including your longer term plans of foreign income and foreign taxes.
@tuxedorose , I tried duplicating your situation i.e. using an adjustment of zero for gross foreign income/asset ( on which foreign taxes were levied) as also just leaving it blank -- I could not get an error. However I am using desktop version of Home & Business with the latest updates. I did indeed find the questions etc. quite opaque and possibly troublesome for the uninitiated. Normally I operate mostly in forms mode and often shuttling between the step-by-step and forms mode. Do not have access and not familiar with the on-line version ( it is supposed to be same or very similar from user perspective , in step-by-step mode). If zero has not worked , I would suggest clearing the entries ( gross foreign income/ asset ) and adjustment and re-enter both -- perhaps this will reset the entry worksheet. Another thing I noticed is that to get to the form 1116, other than jump to from search, one has to select "update" foreign taxes paid under "deductions and credits " tab -- a bit contorted way of getting there.
