@mlpinvestor assuming that you have access to Windows H&B or similar but one where you can work in the forms mode --- I used step-by-step in entering K-1 box details ( box by box. ). Then moved to forms mode and as needed switching to K-1 worksheet to verify that I have entered everything correctly. Then to make sure all is well, selected the K-1 worksheet from forms tree ( in forms mode ) and as necessary confirmed that right clicking on an entry box i could see the HELP & source details/ explanations. You should try this as there is a large amount of information there to supplant the step-by-step entries ( without explanation ).
Then I included a large amount of foreign taxes paid / accrued and thus form 1116 was included in the forms tree. Here I clicked an arbitrary box to open the form 1116 worksheet. Now I could enter the Foreign source income ( dividends line in your case ) and arbitrary chose a country ( Germany , one which US has a Tax Treaty with ). This then allowed everything to flow correctly on to form 1040 and Schedule-1 and 3 .
Note that when I entered a foreign taxes paid less than the Safe Harbor amount for the filing status ( Single in my case ), TurboTax behaved correctly and generated no form 1116 or worksheet but gave me the credit as expected.
Comment on your question about Paid or accrued ( foreign Taxes ) does not directly have much to do with your own accounting process -- For US purposes, all taxpayers are cash basis. However, when you have foreign countries involved a large part of the world is NOT calendar year tax process --- e.g. UK / commonwealth countries generally use 1st April of the calendar year to 31st March of Next year as Tax year. In such a case the filing and settlement of taxes needs to be allocated for US purposes and furthermore the taxes are not settled / finalized ( even if withheld at source ) till post US filing date and therefore you claim "accrued" by allocating based on average for the last settled year. You then mostly have to come back and file an amended return to recognize any changes to the allocated tax figure.
Does this make sense ?
Is there more I can do for you ?
