Deductions & credits

In this Turbo Tax article, you do not need to fill out form 1116 if you meet the following criteria.

• If all your foreign-taxed income was 1099-reported passive income, such as interest and dividends, you don't need to file Form 1116, provided that any dividends came from stock you owned for at least 16 days.
• Single filers who paid $300 or less in foreign taxes, and married joint filers who paid $600 or less, can omit filing Form 1116. But using the form enables you to carry forward any unused credit balance to future tax years; without filing Form 1116, you give up this carryover tax break.
• If your income came from a U.S. territory such as American Samoa, Puerto Rico, Guam, or the U.S. Virgin Islands, special rules govern how you use Form 1116 for the FTC.

Since you do not have a Form 1116 reporting requirement, please ignore my earlier advice about reporting this as 0% as this should not be an issue without a Form 1116. This was a reporting question while you were reporting form 1116.

if $85 is your only foreign tax paid for the year, you may wish to delete your Form 1116. 

If in Turbo Tax online;

1. Now, click on Tax Tools in the black left menu bar at the bottom of the form
2. Go to tools>delete a form
3. Delete Forms 1116. 
4. If using the software, go to forms>select Form 1116>once it appears in the right portion of your screen, select delete form at the bottom of the screen.
5. Now log out and then back in your return. The changes should be complete.

Now once this is done, go to:

1. Now, click on Tax Tools in the black left menu bar at the bottom of the form
2. Go to tools>view tax summary
3. Now check Preview my 1040 in the menu bar and check Schedule 3 in your 1040. You should still see your $85 credit in line 1 Schedule 3 as a non-refundable credit.

@jtb5