In the instruction, Schedule D refers only to Estates and trusts. (Form 1041) and not for individuals.
Schedule D Filers
Note. Throughout these instructions, references to Schedule D (Form 1041) are for estates and trusts only.
https://www.irs.gov/instructions/i1116#en_US_2023_publink11441fd0e1815
Looks like all these complex instructions and loops are designed with ulterior motive to trap people who have paid Foreign taxes on income from their homeland and are living in US and subject them to double taxation. The word "Foreign Tax Credit" labeled in Form 1116 looks like a sweet carrot for foreign nationals who are residents or living in US, but the reality is it may be a bitter one.
I spent many hours to figure this so called "Foreign Tax Credit" but due to the gymnastics of the process and how many tax software including TT have made it very complex to go through the process with totally inadequate instructions to claim the same (may be by design!!), I am thinking of just paying the taxes in both US and in my country for the same income.
