When filing Form 1116 for claiming foreign tax credit, the special instruction turbotax.com says
How To Create Copies Of Form 1116 In The Right Order
In order to make sure TurboTax generates multiple copies of Form 1116 in the correct order, you should first identify which source of foreign income incurred the most taxes. This item will generally result in the largest credit and should be listed first. Once you know which income item to list first, make sure the first copy of Form 1116 includes this item. In the interview, you do this by NOT "reporting" income from any K-1's or 1099's the first time you visit the Foreign Tax Credit interview, except for the income item that generates the largest credit. ("Reporting" income in the Foreign Tax Credit interview creates a copy of a Form 1116 and links the income to the Form 1116). The first time through the interview, only report income from the item with the largest tax paid. After completing the interview the first time for the largest item, then you can revisit the interview and report any other items you have. (Note: "completing the interview" involves answering Yes to question about being done with "all Foreign Tax Credit Computation Worksheets.") This will generate the additional copies of Form 1116 that you need, and they should be in the correct order.
The issue is that, I have my largest foreign source income as dividends ( and less amount from foreign interest) and so want to report the foreign income for dividends through the first round of interview but turbotax.com online does NOT allow me to bypass entering income for foreign interest. It is forcing me to report the income for foreign interest
I have uploaded the screenshot where it is stuck!
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The issue of dealing with the correct order only applies to multiple categories of income. Since you only have passive category income it doesn't matter how many types of income such as interest, dividends, etc. as these will not have any adverse effect on the outcome.
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