Foreign earned income tax credit

TurboTax will perform the calculation, There is no way to preassign what amount will be used this year or to manipulate the data toward a desired outcome.  Here is how to report.

1. Go to the income section of your return.
2. Go to Investment and Savings
3. Go to dividends on 1099 DIV
4. Fill out the 1099 DIV like you have received one.  Be sure to put in a foreign tax amount in Box 7 of the form.
5. There will be a follow up screen that asks for the Foreign Dividend information, including the country where the Foreign Dividend originated from.

After this information has been entered, here is how to claim the Foreign Tax Credit. 

1. Go to Federal
2. Deductions and credits 
3. Estimate and other taxes paid 
4. Foreign Tax Credit>start or revisit

As you begin working in the section, the program will recognize you have already made an entry regarding foreign taxes in your 1099 DIV. 

1. It will first ask you to verify where the dividend income came from.
2. Next screen you will select report income in the radio button
3. In the next screen, put a checkmark in the box that says select 
4. The next screen will verify the amount of foreign-source income the foreign tax was derived from.
5. After this is done, you are done reporting foreign income. If it asks you if you wish to review your entries, you can say no.
6. Next it'll ask you making a simplified election for AMT.  if you made this in previous years, you  check the box. Usually if your only income has been passive in previous years, you may have made this selection. You may need to look at last year's return to verify this.
7. Keep navigating the screens. When a screen appears telling you to choose an income type, choose passive income.
8. Press done in the next screen.
9. Press Continue through the next screens that appear until you reach Foreign Tax Credit Carryovers. Here is where you will report Carryovers from previous years, if any.
10. Finish out the section.