The amount in
Form 1040, Schedule 3, Part 1: Nonrefundable Credits, Line 1: Foreign tax credit
should come from my
IRS 2022 FORM 1099-DIV - DIVIDENDS AND DISTRIBUTIONS, Line 7: FOREIGN TAX PAID
But it doesn't.
The amount is set by the TurboTax software to the same value as Schedule 2, Part I, Line 2: Excess advance premium tax credit repayment.
Is this due to the constraint I read in another post where the Foreign tax credit cannot be greater than the total tax owing? My total tax owing in my admittedly very simple return is just the amount in Schedule 2, Part I, Line 2: Excess advance premium tax credit repayment.
I don't see the value in my FORM 1099-DIV, Line 7: FOREIGN TAX PAID, show up anywhere in my tax return.
The FORM 1099-DIV, Line 7: FOREIGN TAX PAID, comes from companies outside of the U.S. like BioNTech in Germany who pays dividends, and those dividends are taxed by the German government before ADR holders like myself get the after-tax part of that dividend. The amount of this tax witheld by the German government is shown in FORM 1099-DIV, Line 7.
