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While it feels like TurboTax is "disallowing" your credit, what you’re likely seeing is the Foreign Tax Credit (FTC) Limitation in action.   The IRS has a "fairness" rule: they won't let you use foreign taxes to wipe out tax on your US-sourced income. You can only use the UK tax to offset the US tax specifically assigned to that UK income. The remaining Foreign Tax will be an excess amount that you would first carryback to your 2024 return if you had foreign income for that year and then if there is "additional excess" it will carryforward for ten years (starting in 2026)  to be used to offset any future foreign income.    The reason, why your refund dropped is when you added the $36,000 UK withdrawal, your total taxable income went up, which increased your Total Tax Liability. Then, when you added the $13,000 foreign tax, TurboTax calculated your "Credit Limit" using this formula:   FTC LIMIT = (US TAX) X ( foreign taxable income/Total worldwide income)   For example, If your total income (US + UK) puts you in a 22% effective tax bracket, the US tax on that $36,000 withdrawal is roughly $7,920. Even though you paid $13,000 to the UK, the IRS will generally only let you take a credit for that $7,920 this year.    The "missing" $5,080 ($13,000 - $7,920) doesn't disappear; it becomes a carryover that you can use in future years, as I mentioned previously.    @ZengFreeman 

Until you enter your year-end balance, TurboTax produces an incorrectly low taxable amount for the Roth conversion by assuming that your year-end balance is zero and applying too much of your basis in nondeductible traditional IRA contributions.  Once you enter the year-end value, TurboTax corrects the original calculation to produce the correct, higher taxable amount of the conversion by applying less of your basis.

Tambien le tiene que poner el Qualified Manufacturer Identification Number (QMID) para poder continuar.  Es un numero de 4 digitos que le deben de dar.  Si no la tiene, puede usar esta pagina para conseguirlo:  Find your QMID 

I am in the same exact situation - no 1099Q involved though. The problem is  I don't know what things like "I just created a student profile with scholarship and left enough to cover $4,000" mean. How do I "leave enough to cover 4000", what do I put where? This is absurd. Can I speak to someone like you who understands the workaround? I've tried the delete and clear cash several times including on the phone with expert help and it doesn't change the result. I still get the same error message the OP is getting.   I called tech support who sent me to expert who sent me back to tech support who now sent me back to expert. It NEVER was this way in prior years.   Sorry, I just realized I posted here already and while there is an option to Edit I don't' see an option to delete.l