@11486 ,
(a) I went back and tried with 301 ( 300 resulted in safe harbor credit of 300 ), -- and Turbo cleared out the 1116 data and deleted the safe harbor credit.. It therefore isa acting as it should.
(b) Turbo does not warn you about the safe harbor, because it assumes that the tax-payer knows and needs to choose the amount of Credit/Deduction . It cannot legally suggest to the Tax Payer that instead of say $800 ( as shown on the 1099-DIV as foreign tax paid ), the taxpayer may be better off by claiming only $600. Because it is your return and it is your choice. Besides officially it does not have all the facts at this point ( while filling out form 1116 ), even though it can guess . It is just playing by the rules and leaving all the decision s to the User/Client/Taxpayer.
(c) Also note that this safe harbor availability is kind of limited to only US based earnings i.e. where a 1099-DIV/INT is issued. I don't remember the exact statute language on this though.
I hope this now closes your query -- Is there more I can do for you ?
