When working on the foreign tax credit section, I list my countries & RIC that match what is on my brokerage statements. It then tells me that I have reporting $X of total income from [Brokerage1] and this matches the sum of my dividends and capital gain distributions from my 1099-DIV.
The next section asks about entering income and deductions for AMT purposes (because I have previously filed Form 1116 for AMT purposes and must continue doing so). I select passive income because that's correct for dividends. I select the country and it asks for other gross income received from sources within the country (not including income already entered on 1099-INT, 1099-DIV, Form 2555, or Schedules K-1).
At first I did not include the capital gains because I do not believe I paid foreign taxes on the capital gains (only the dividends) but TurboTax has a screen, "Any foreign source qualified dividends or long-term capital gains" and when I removed the non-qualified dividends and added the long-term (net?) capital gains, it told me that the number I entered on the "Foreign qualified dividends and l.t. capital gains" exceeds the value carried forward by the program on the "Total foreign income for this category." So... that's why I am under the impression that I need to add the capital gains and losses on the previous pages.
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