Claiming foreign tax credit

Entered foreign employment income and tax paid through the Foreign Slips screen. Also entered tuition fee. Turbotax is using the tuition exemption first to reduce tax payable to zero and did not use the foreign tax credit at all. I was expecting Turbotax to apply the foreign tax credit first before using the tuition exemption. Please advise. Thanks.

Troubleshooting

Hi,

 

According to the tax rules, there's a certain order in which the tax credits need to be claimed first.

 

When it comes to tuition, it has to be used before other tax credits to reduce federal taxes payable to 0. This is before medical, charitable, interest on student loans, dividend tax credits and the foreign tax credit.