Many people have had problems if they need to use Form 1116 in TurboTax so this may help someone else.
After a lot of frustration a TT chat solved it. It took a long time but I will give their answer here. It is indeed a bug in the program: TT does not link Form 1116 correctly.
Here is what needs to be done to correct the problem:
When the error appears, double click on "copy 1 of Form 1116 ..." (which is in red). It will open a window where you will select to unlink the form. (Do not add another form!)
Then re-run the error check and this time the error message will show a box to ignore the error. Select it.
Rerun the error check and the error will no longer be there - but the tax credit will have been applied correctly!
The agent said she will report the "bug" to Intuit, so maybe (don't hold your breaths) it might be corrected in a new update.
In the meanwhile I hope this helps someone else.
Jeff