There are two approaches to use in this instance.
1. Consolidate the forms:
If your 1099-DIV comes from a standard U.S. brokerage (like Fidelity, Schwab, etc.) and the foreign dividends are from diversified mutual funds or a collection of stocks, you are often allowed to aggregate them.
- Instead of trying to list "Country A" and "Country B," select "RIC" (Regulated Investment Company) or "Various" as the country in the 1099-DIV entry screen.
- TurboTax will put the total amount on a single Form 1116 under the "RIC" designation. The IRS widely accepts this for passive dividend income, completely bypassing the need to split the math.
2. Create Dummy 1099 DIV's
- Edit the Original 1099-DIV: Change the amounts on the "Main" 1099-DIV to represent only Country A. (e.g., if total was $1,000 and Country A was $600, change the main entry to $600).
- Create a "Dummy" 1099-DIV: Click "Add another 1099-DIV." Name the payer something like "[Broker Name] - Country B."
- Enter the remaining $400 of dividends here.
- Repeat this for your spouses Div's.
The second approach may be safe, but the first approach is the easiest and is acceptable with the IRS. This approach is the one I suggest.
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