I'm trying to enter foreign tax credit info and not understanding why no foreign tax credit shows up on my taxes.
All the foreign taxes result from 1 foreign company and a couple of mutual fund dividends. These are imported into TurboTax fine.
When I try to enter the two sources, I'm able to get the total amount to show up, but the list of countries only has one in it.
Then when I look at Form 1116 in the Forms view, after all the mysterious calculations, there is $0 Foreign Tax Credit. I don't know if it's related, but the the entry for "Gross income from all sources" on line 3e of Form 1116 is some unrecognizable number that I have no idea where it comes from. It's over twice my reported income.
I have a carryforward from last year as well. Long story short, no foreign tax credit shows up on my return, and I'm scratching my head wondering why not.
Since you have carryovers, there is some info needed. Does the total foreign tax paid qualify for the $300/600 exemption? Is the amount on form 1040 line 18 equal to or greater than the exemption?
How the FTC in TurboTax for the CD/download products works for simple cases has changed from 2021 to 2022. Basically, you have to complete the 1116 in Forms mode by hand (this is a DIY product after all) to get the FTC amount to show up in Schedule 3 (assuming you are eligible for it, as rogge1772 points out).
You have to assign the income to a category - dividends are generally passive income. and start completing the form from there.
Come back if you have questions, tell us what countries the FTC comes from, what income comes from each country, and so on.
The gross income is inflated when I entered the gross income in the K-1 Trust In Put Form on line 7
That causes the line e of Form 1116 under Deductions and losses to double. That causes the percent of foreign source income to shrink compared to All Sources Income. The smaller percent reduces the deduction of expense against the foreign source income. That increases the "net " foreign source income and the limit amount the can be used this year.
While this means is the program need correcting, it does not seem to erase any credit like you are describing.
The amount on line 1(e) on form 1116 comes from the worksheet above it, the Gross Income from All Sources Worksheet. If you right click on the number in the first row of that worksheet, you will see a list of the forms where that number would be coming from. You can then take a look at the forms from that list that are in your return to determine what is making up that number.
The higher the gross income from all sources is, the lower your foreign tax credit will be, as it is based on your US tax on foreign income. I suggest you trouble shoot that number before you do anything else.