The program should be presenting the four foreign tax credit carryover screens (for regular, AMT, and the corresponding adjustments) on each trip through the Form 1116 interface (for a given category of income). For example, once you tell it about your general category income and proceed, you enter the carryover details (for just that category, even though those screens don’t specify “general category”), and the program uses them in the credit calculation and creates the new “general category” Schedule B (which replaced the old generic carryover worksheets) for next year’s carryover.
But I’m guessing that you already knew this (as it appears you’re well-versed in this topic), and that you’re actually seeing those screens when you do your first 1116, but not on your subsequent one for the passive income.
That's definitely an aberration (as the carryovers have always been handled separately, and TurboTax configured accordingly). Hopefully it was a temporary one, and you’ve moved on and filed (since it’s been a while since you posted). But if you’re still struggling with it (and haven’t done this yet), deleting all your foreign tax credit info and re-entering (making sure to do general category first, then passive) would be the first thing to try.
Also, years ago it was necessary to leave your passive foreign info — from 1099-INT, 1099-DIV, etc. — out of your return while you prepared the general category form. I believe this is no longer necessary, but might be something to try when experiencing an issue like this. (You don’t have to actually delete the 1099s — you can just temporarily remove the foreign tax entries, then replace them after the general category form is ready.)
If the problem persists, @MangoTango, please tell us what version of TurboTax you’re using. I’ll see if I can somehow replicate the issue...
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