When we write $C^\infty(T^*M\otimes\mathbb{C})$ in this context, that doesn't mean we have functions defined on $T^*M\otimes\mathbb{C}$. Rather, it means we mean certain functions which take values in $T^*M\otimes\mathbb{C}$, specifically smooth sections of the projection map $T^*M\otimes\mathbb{C}\to M$. More generally, if $E$ is a vector bundle on $M$, it is common to write $C^\infty(E)$ for the space of smooth sections of $E$. (This is unfortunately ambiguous with the notation $C^\infty(M)$ for the ring of smooth functions on $M$. A better notation is $C^\infty(M,E)$ for the space of sections of $E$ on $M$, but people sometimes abbreviate this to just $C^\infty(E)$.)
So that is why we have the cotangent bundle--at each point, we are picking a cotangent vector. The factor of $\mathbb{C}$ is because the cotangent space $T^*M_p$ at a point $p$ is the space of real linear functionals on the tangent space: they take in a tangent vector, and spit out a real number. By tensoring with $\mathbb{C}$, you get (up to isomorphism) the space of complex linear functionals on the tangent space, which spit out complex numbers instead. More generally, if $V$ is a real vector space, there is a natural isomorphism $\operatorname{Hom}(V,\mathbb{R})\otimes\mathbb{C}\to\operatorname{Hom}(V,\mathbb{C})$ (induced by the bilinear map which sends a pair $(f,c)\in(\operatorname{Hom}(V,\mathbb{R}),\mathbb{C})$ to the linear map $g(v)=cf(v)$).
So to sum up, a section of $T^*M\otimes\mathbb{C}$ is a function that at each point of $M$ gives you a complex-valued linear functional on the tangent space. That's a complex-valued 1-form.