Since the foreign qualified dividends are greater than $19,999, the adjustment must be made. Because you have Forms Mode, you can avoid going thru the interview.
Bring up the f1116 worksheet. Under Part 1, go to line 1h the “qualified div. and LT cap. gains.” Insert the 21k into the box. Notice that 1g now displays only the unqualified dividends and just stores this for later. The 21k goes into the algorithm and the amount subtracted from the 21k is displayed in line 1k and the remaining qualified dividends are displayed in line 1l. Then TT combines the unqualified amount from line 1g to the qualified amount in 1l and displays the total in line 1m. TT will also checkmark the smart worksheet indicating that the adjustment is required. Also TT will checkmark “B” in the line 18 adjustment worksheet near the bottom.
