Retirement tax questions

I followed the instructions in this email chain and entered the money as other income and said it was a lump sum pension distribution. I waited until the form 1116 was available ( today for 1st time, yes it’s already March 3rd in Europe where I live)) But this form asks me to enter the income again ( is it counted twice now?) and says that I can not get credit for lump sum distributions from foreign countries. It says I can list it as passive income but when I do this the credit I get is only 3% of the taxes I paid. Seems like I’m doing something wrong. I’m confused.  Thanks