Basically, TurboTax experts could not tell me how to report the foreign tax credits if I reports this interest as misc income instead of as 1099-INT. If we talk with IRS, they say ask TurboTax on how to do that and why we are entering 1099-INT if we did not get one from the bank. It gets stuck at that. I spent more than 4 hours with TurboTax calls and got no where. I faced the same problem last year and the work around above worked but this year claiming foreign tax credit on TurboTax is allowed only if you worked outside of US and not for passive income.
Finally, one of their reps found the FEIN of the bank (it was ICICI bank) and I used that to bypass the review check. She told me that they have a system to look-up FEIN of international banks. However, such scenario may still happen for non-international banks which is yet to be solved by Turbotax.
