Deductions & credits

The IRS Instructions for Form 1116 say, "You must enter in Part II the amount of foreign taxes, in both the foreign currency denomination(s) and as converted into U.S. dollars, that relate to the category of income checked above Part I."

When you get to the end of the Foreign Tax Credit section in TurboTax Online, it says "Your foreign tax credit is XXXX. Certain less common circumstances may require additional computations on your part. Select more information for a complete explanation of the steps you should take.

When you select more information, it pops up with the following:

Here are a few unusual situations relating to Form 1116 that are not handled in Interview:
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- Foreign taxes paid in foreign currency and you converted the amounts to U.S. dollars
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If any of these situations apply to you, you cannot use TurboTax Online to prepare your return.

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