@gmangesh , @BME , IMHO, you two have similar predicament but the cause and hence the path forward may be totally different. I hope I am interpreting this correctly ( without having the total picture :(
@gmangesh , your issue i.e. not being able to use the FTC is because the FTC is a NON-Refundable credit and thus can ONLY reduce your total tax liability up to zero. So in your case because your tax liability was already zero, FTC benefits are nil and lost. The only corrective action here is to refuse the "simple method" of FTC and force the use of form 1116. This will recognize the whole credit -- dollar for dollar. But because the allowable would be zero ( no tax liability without regard to FTC ) , the whole amount would be available for carry back or carry forward. Hopefully then you can use it in another year.
@BME , in your case because from 1116 creates a very small ( rounded to zero ) FTC and assuming that your tax liability is not zero, you can use the simplified method and force the system to use the safe harbor process. If that is not beneficial to you then you can always ( because you are using windows desk top version ) you can go to forms mode and include the total FTC ( over-ride ) on the federal carry-over worksheet. This should not affect your current return and be eligible for e-file. Just make sure that next year when you prepare your return that the federal information worksheet shows the carry-over information.
I hope this helps . Is there more I can do for you ?
pk
