Why does my tax liability increase when I enter the foreign tax credit carryover amounts from previous years?

[rogge1722 · Accepted solution]

One possible reason is that TT used the $300/600 exemption automatically before you entered the carryovers. Once the carryovers were inserted, TT removed the credit because it doesn't know if you want to use the exemption or go thru the full interview and utilize the carryovers which might result in getting more credit than using the exemption.