Get your taxes done using TurboTax

You are correct; this is not an error.  The amount of Foreign Tax on your 1099-Div is supposed to flow through automatically to Form 1116.

However, now you need to go to the Foreign Tax Credit section (under Deductions & Credits > Estimates and Other Taxes Paid) and enter the amount of Foreign Income that is associated with the amount of foreign tax you paid.

This is generally on a supplemental statement from your broker, and the total amount of Foreign Income may be sourced from several countries.  

In the Foreign Tax Credit section, indicate that you want the Credit.  The interview asks if you want to review your entries from your 1099-Div, choose No. 

Choose No for AMT, Continue, and choose 'Passive Income' for income type. For Country choose 'RIC' (Regulated Investment Company).

Choose Yes, your total taxes paid only include taxes paid on form 1099-Int or 1099-Div.

Continue, and enter the amount of Foreign Income reported on your 1099-Div.  Continue, and indicate that the taxes were paid. 

Continue through to the end of the section.

Here's more info on Claiming the Foreign Tax Credit.