Hi,
I have had a foreign tax credit of $3,246 for the year 2022. I used $284 of it in 2023 and so the carryover amount for 2024 should be $3,246 minus $284 = $2,962. This is being accurately calculated in Turbotax.
For the year 2024, I am using an additional $730 in carryover amount and the remaining carryover for 2025 should be $2,962 minus $730 = $2,232. However, Turbotax is incorrectly calculating it to be $2,516.
The issue is that in the Schedule B (Form 1116) - Foreign Tax Carrryover Reconciliation Schedule, Turboxtax shows $730 being used from "2nd Preceding Tax Year" (or 2022) amount (the form shows $730 as negative number which is accurate since I am using an additional $730 from 2022 carryover amount). However, Turbotax is adding $284 (showing it is a positive number in the schedule B of Form 1116) under the "1st Preceding Tax Year" (or 2023) and that is causing the amount to be incorrectly calculated to $2,516 instead of $2,232 (difference of $284).
How do I fix this error? Is this a bug in the software? Would appreciate any guidance on this subject. Thanks!
