I have encountered the same issue -- my return was rejected with the same message. I also have a Vanguard account and entered the amounts from the 1099-DIV. I wasn't asked in the final review for "Qual Div and LT Cap Gains" -- the entry in Form 1116, Part I, line 1h. But this is simply carried over from the entry in Box 1b from the 1099-DIV and showed up in my Form 1116. After the rejection, TurboTax did tell me to go back to the section on "Deductions and Credits" and re-answer the questions for Foreign Taxes which I did. I did the review again and TurboTax said all was fine, so I e-filed again. And again it was rejected. So, I deleted my entries for the International Stock fund and re-entered them. Did the review again -- all was fine and e-filed again. And once again it was rejected.
It appears as if this is a bug in TurboTax and I guess I'll have to wait until they fix it.
