TurboTax applies the available foreign tax credit from Form 1116 against the amount of the advance premium tax credit (APTC) calculated as due for repayment under Form 1095-A because both credits are part of your overall tax liability calculation. The foreign tax credit reduces your U.S. tax liability for taxes paid to a foreign country, while the APTC is an advance payment of the premium tax credit to help cover health insurance premiums.
When you file your tax return, TurboTax calculates your total tax liability, including any credits and repayments. If you have a foreign tax credit available, it will be applied to reduce your overall tax liability, which includes any repayment of the APTC.
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