Before you go thru the foreign tax credit interview, you need to determine if it is necessary. You qualify for the exemption. Next is to determine if you have used all or a portion of it. Bring up form 1040. On line 16, is the tax greater than the exemption? If so, the exemption amount is posted on line 20 and you are finished.
If line 16 is less than the exemption, then the amount on line 20 is only enough to bring the tax to zero.
If you cannot use the full exemption, any unused portion cannot be carried over. You then elect to not use the exemption. Then you fill out form 1116. TT has to see foreign tax credit on the 1099- INT and the 1099-DIV. What you can do is to subtract $1.00 from the 1099-DIV box 7 and add it to Box 6 of the 1099-INT. Then revisit the interview and TT will see it.
After you are done, open the Federal Information Worksheet. Scroll down to part 6, then look for foreign tax credit and checkmark the box to file the form. This will cause TT to carryover any unused credit to 2023.
