dollar amount in box 1a of 1099-div from vanguard includes dividends received AND foreign tax paid (box 7)

Hi,

I could be confused. But my 1099-div includes all the dividends I received from an international fund. Then it also includes the $$ that appear in box 7, the foreign tax paid. 

Is that correct? I pay taxes on all the dividends I received, plus the foreign tax, and then get some amount of credit that reduces my taxes. 

Thank you for any help.