Turbo tax is not allowing foreign tax credit to be taken. After entering the credit, it shows $0.

[jfrancis11]

Is this a glitch in the software?

[ThomasM125]

It may be that you haven't entered foreign income on your tax return, or you don't have any income tax on which to apply the foreign tax credit. You are only entitled to a foreign tax credit to the extent you paid US tax on foreign income during the year. When you went through the Foreign Taxes section in TurboTax, you were instructed to enter any foreign income that wasn't already reported on 1099 forms or K-1 forms:

If you haven't reported any foreign income in the year then you won't be entitled to a credit for taxes paid on it.

Also, you can look on line 24 of your Form 1040 and subtract any credits on lines 27 through 29 to see if you have any income tax left on which to apply the foreign tax credit.

To view your form 1040 and schedule 1 to 3:

1. Choose Tax Tools from your left menu bar in TurboTax Online
2. Choose Tools
3. Choose View Tax Summary
4. See the Preview my 1040 option in the left menu bar and click on it
5. Choose the Back option in the left menu bar when you are done