The $2,000 was an IRA Contribution, not a withdraw.
As stated on the IRS site About Form 1116:
"File Form 1116 to claim the foreign tax credit if you are an individual, estate, or trust, and you paid or accrued certain foreign taxes to a foreign country or U.S. possession."
I'm a U.S. citizen living in the U.S. using my U.S. accounts so why would my $2000 U.S. dollar transfer into my existing U.S. IRA end up on Form 1116?
