No response yet, so (in hopes of verification from someone in the TurboTax community) let me provide what I believe to be correct answers to my own questions:
1) Part 1 of Form 1116 is where income and expenses listed on 1040 are identified as taxed in the taxpayer's foreign tax home. Thus they are entered here in addition to having been entered on the 1040.
2) If working directly with forms in TurboTax, the foreign-taxed income is entered under "g. 1. Gross income". For my pension income, I entered "403b plan distributions" under 1.a.; and for income from renting our US home, I entered "rental real estate" under 1.b. I have listed "Netherlands" in Column A, with the amounts of these two types of income below in rows 1.a. and 1.b. I do not believe that the IRS considers our US Social Security payments as income re-sourced to the Netherlands. As soon as these income amounts are entered, TurboTax immediately registers a Federal Refund.
3) According to the IRS (www.irs.gov/individuals/international-taxpayers/foreign-tax-credit-choosing-to-take-credit-or-deduct...) the choice of paid vs. accrued in Part II of Form 1116 depends on “your method of accounting.” The idea here is that you cannot get credit twice: once for the tax year itself and once for a later year when you actually paid the foreign taxes. For example, let’s consider your 2019 foreign tax credit for the 2019 tax year, which you paid in 2020. You may not claim the credit for both years. (Pretty obvious, right?) Checking “Paid” on Form 1116 tells the IRS that you are claiming the foreign tax credit in the year you actually paid those taxes. (This is why TurboTax 2016 allows no later date than 12/31/2016, and TurboTax 2019 allows 12/31/2019 as its latest date.) Thus in my case, if I check “Paid” then I need to use a Form 1116 for 2019, whereas if I check “Accrued” then I should (as is my intention) use the Form 1116 generated by TurboTax 2016. One further bit of information that others may find useful is that according to the IRS, “Once you make that choice, you must follow it in all later years and take a credit for foreign taxes in the year they accrue.”
