Your answer unfortunately does not answer my basic question of whether I am legally entitled to forgo the carryover and simply claim the exemption. By contrast, the other responder (rogge1722) seems to believe that is the case: "If after the calculations the credit on form 1116 line 35 is less than the exemption, you can elect to use the exemption in lieu of the calculation." It would be very helpful to know whether turbotax agrees with that statement. Similarly, I cannot see the fairness of turbotax voiding its guarantee if I exercise an option to which I am legally entitled but which the turbotax program fails to afford me. In the final analysis, I am not trying to deprive the government of money to which it is entitled. It's just that it strikes me as illogical and unfair that by using a $96 carryover I wind up with a tax credit that is $225 less than if I did not use it. A more detailed response from you would be appreciated. Thanks
