Every year, I struggle filling out FORM 1116 in TurboTax. This year, I thought I had everything finalized, but upon Final Review it made me attempt to enter Adjusted Basis values of my foreign investments and all holdings that ended up with me owing $1,500 more in taxes.
I have a couple thousand dollars of carry-forward foreign tax credits and in 2023 alone I paid $2,400 in foreign taxes, but no matter how I answer the questions I am getting limited to only a $663 foreign tax credit. I know you need to have paid taxes in order to get the credit, which I clearly did, but I can't see how else I'm being limited here.
It all comes down to values I'm entering on "Adjusted Basis for Assets". This screen is highly confusing with no explanation of what should go into these cells. Is this an adjusted cost basis of my foreign vs. all investments, is this a current market value of these? None of the values I need for this are included in my Schwab 1099 Composite statement. Please help!
