Hello Amy,
Sorry, my point of confusion is in your #1. You state enter the US source dividends as "foreign source" and enter the "foreign tax paid"....and in the same line you say, then do your German tax return. But if the German tax return is not already done, where will these numbers (foreign tax paid) come from. And if the tax is already paid (which as Michael alluded to will be 25%)...then US will tax a max of 15% more, so I am not too sure how this scenario helps.
Please excuse my ignorance.
SK
