In my 2019 return, it was > $600 per the 1099s. But TT had somehow come up with a value ($444) < $600 and populated schedule 3, line 1. I am pretty sure I chose the option to enter the foreign taxes into 1040 instead of filling out 1116. But why did it give that option as the default?
Let me clarify my question. My taxes are pretty simple - I just to have import W-2s, 1099s, 1098s, etc. as input. So I simply import my docs and use TT step-by-step workflow to complete my taxes. I figure TT has all the info to pick the correct option to complete my return. Yet I discovered that TT 2019 entered a smaller value in Schedule 3, line 1 than the actual foreign tax that could have been easily computed from the 1099s. How could this happen?
TT 2020 step-by-step defaults somehow ended up with foreign tax credit as 0. This is absurd - unless TT chose itemized deduction for foreign tax credit after advising me to take standard deduction (the correct choice). Could this happen?
TT 2021 forces you manually enter foreign tax info for completing Forms 1116. While this is better than incorrect computation of foreign tax credit, I would expect TT to compute it automatically and correctly at that.
This is my issue - can I trust TT to complete a return correctly using the step-by-step workflow given that my tax situation is straightforward. After I discovered these errors, I have less confidence in TT. After all, one of the reasons I use it is to avoid studying instructions for every form in detail.
Hope my question is clear. If there is some explanation as to how these could have happened I would like to hear that.
