Previously, I filed an amended 2020 return to carryback a portion of unused foreign tax from 2021 to 2020. There was still a little bit carried forward into 2022, even after the carryback and the portion used in 2021.
Now, for 2022, I need to show the adjustment via Form 1116 sch B. I did this in TT by entering the carried back amount on the form 1116 worksheet, "2021 carryback adjustment" field.
While this correctly generates the Form 1116 SCH B data, form 1116 line 10 (the sum of all carryover and carryback inbound into 2022) does not include the adjustment and is therefore too large. Line 10 seems to be pulled from the "Foreign Tax Credit Carryovers" rather than incorporating my manual adjustment by pulling from the "Foreign Tax Credit Carryovers for 2023" at the very bottom of the worksheet.
If I try to move the carryback adjustment into the Foreign tax credit carryovers table then TT thinks that this was a previously reported adjustment and does not generate SCH B correctly.
My solution is to enter the adjustment into "2021 carryback adjustment" so that TT thinks its new and generates schedule b correctly. Then I overrode line 10 with the correct amount. Hopefully, this will also preserve the carryback/carryforward history when importing into 2023.
I mention it here because I think this is a bug and hopefully it helps someone and/or intuit corrects it.
