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I own several mutual funds that paid foreign taxes. I entered the amount from Box 7 into TurboTax and answered all the questions re Form 1116. But when I hit "Done," TT tells me I get $0 in Foreign Tax Credit. Why? (I am a U.S. Citizen, living abroad. 100% of my taxable income is investment income.)
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Try using the IRS' Interactive Tax Assistant for "Am I eligible to take the foreign tax credit?".
This may help you understand the situation. And if not, come back and tell us what the Interactive Assistant said.
Thanks for the suggestion. I did the IRS interview, and it says I'm eligible. But then I found a boneheaded error I made, which I should have noted before posting. So ignore my question, and sorry for the disturbance.
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