I finally had the time to call Turbotax support and spoke to very helpful Leola about foreign tax credits entering. This clarified for me the questions i had above. To recap the procedure: 1. Create the new 'dummy' entries ( on the interview: 'personal' -> 'personal income' -->'interests and dividends' --->'dividends on 1099-DIV'. Then, in the new "Lets get the details from your 1099-DIV or brokerage statement" in the 'received from' can be the 'dummy' name and country ). In Box 1a enter the dividends from that country. And, one can put the qualified dividends from that country in box 1b , or these can be added later in the 'deductions and credits' interview when one fills out the interview (Estimates and other taxes paid -->Foreign taxes ). Enter the foreign tax paid into the box 7. TT combines dummy entries from the same foreign country when it creates the Form 116, which accounts for a smaller number of Form 116 entries then dummy entries if more than one dummy entry per country (example from two brokerage statements). Of note: subtract the dividends (both total and qualified) that one is entering into the the foreign country 'dummy' entry from the main brokerage 1099DIV. (Also remove the box 7 foreign tax from the main brokerage 1099DIV when it is entered in the 'dummy'). The total dividend income from all the 'dummy' entries has to equal the total dividend income in the brokerage 1099DIV. When TT files, it sends in the total dividend income which has to equal what IRS gets from brokerage company 1099s submitted.
When one does the foreign tax interview in the 'estimates and other tax paid' section of the 'deduction and credit' category, go through each of the subcategories (i don't want to open it back up to find out the name since it will make me go through everything again). This is also where you add total cost basis of foreign dividend earning and total cost basis of all dividend income! Go through each one to avoid getting error messages later in the review.
I am using the downloaded home and business version of TT.
