@BME , First, when you have "Un-allowed" foreign tax credit computed on form 1116, TurboTax will ask if you want to carry any back and how much ( if I remember right) , the rest would be left in the "Carry-Forward" bucket. When you prepare your next year return using Turbo, the carry forward amount is recognized ( on federal carry over worksheet) and applied as foreign taxes paid. You don't need to do anything special for this.
Second, given the figures you quoted and unless you had FTC carry-over, your total foreign source income of US$1337, could not have attracted more the safe harbor amount of foreign taxes paid ( US$600 for MFJ). Thus you should have been able to avoid the form 1116 and its limitations .
I suspect the zero allowable FTC is because of the ratio of foreign income to world income is miniscule.
pk
