For whatever reason, this year the Form 1116 has given me problems. In the past I've filled it out, but apparently incorrectly, as all of our Paid or Accrued Foreign Tax has ended up being deferred, rather than credited against our current taxes. However, I have read elsewhere that married filing jointly (MFJ) can directly take credit for up to $600 in foreign taxes Paid or Accrued, and single filers can take $300. When I consistently checked the box to waive the filing of Form 1116, it finally worked fine. Do so, and you'll end up with the proper credit against your US taxes from all sources (1099s and K-1s). Yeah! No idea why TurboTax does not automatically look at these factors and take the credit, or at least recommend following that path! It should, and it should have in previously years as well!
