Form 1116 is not generated even though my tax situation requires it

Hi,

My wife and I file jointly and have a passive foreign rental income for which we don't have any qualified payee statements (e.g., 1099-INT, 1099-DIV, or Schedule K-1), and we paid a foreign tax of $586 in 2024. To our understanding, we need to file Form 1116, and actually, TurboTax keeps telling us that we need to do so, but TurboTax does NOT generate it at all. However, it starts generating it when we give it a try to specify a foreign tax of $601 or more. We understand that  $600 is one threshold determining whether to generate Form 1116, but that's not a sole criterion, and we must file Form 1116 when we don't have any qualified payee statements, even if the foreign tax paid is less than or equal to $600 as in the IRS instruction here. 

Note that both the Mac and Windows version has the same issue. Specifically, in the form mode, Form 1116 is marked as "FORM NOT REQUIRED TO BE FILED", though the form itself seems correct.

Here is more detailed but hypothetical information for illustration purposes in case this helps:

• Filing Status: Married Filing Jointly
• Net Income: $50,000, 100% of which is a passive income from a foreign rental property (to simplify our explanation)
• Foreign Tax Paid: $586 in 2024 for the country where the rental property is located, and thanks to the tax treaty, we can claim it as a foreign tax credit.
• Expected Behavior: Subtract $586 from the tax of $2,080 (10% of $20,800), attach Schedule 3, and justify the credit amount on Form 1116.
• The issue: The $586 credit is applied, and Schedule 3 is attached, but Form 1116 is not generated.

Steps to reproduce the issue:

1. Fill in the personal information so the filing status is "Married Filing Jointly".
2. In the "Wages & Income part", choose "I'll choose what I work on" and go to "Rental Properties and Royalties". Then, in the Property Profile section, specify that the property is outside the US and add the rental income of $50,000 as "Other income not on a 1099-MISC or 1099-K, and income from a barter or exchange". Let's not claim any expenses to simplify the discussion, so the net income is $50,000.
3. Go to the "Deductions & Credits" part, choose "I'll choose what I work on", and choose "Foreign Taxes" under "Estimates and Other Taxes Paid".
4. "Yes" to "Did you pay foreign taxes in 2024 or have credits to use from a prior year?"
5. "Yes" to "Have you already reported all of your foreign income and, if applicable, foreign taxes paid on interest, dividends, or Schedule K-1?"
6. Choose "None of these apply". Make sure that you do NOT choose "You have no more foreign taxes to enter other than those you entered on a 1099-DIV, 1099-INT, 1099-OID or a Schedule K-1"
7. TurboTax says: "You need to complete Form 1116 if you want to claim the foreign tax credit"
8. Choose "Take a Credit" when asked whether you want the Deduction or the Credit.
9. Keep going, choose "Passive Income" when it asks for a category, and fill out the Form 1116 Worksheet (specify the country and foreign income amount, which is $50,000, with zero expenses and losses). Choose "No, I have foreign taxes paid on rental, royalty, or other income(including wages)" when it asks: "Does your total taxes paid only include taxes reported on a Form 1099-INT or Form 1099-DIV?" and enter the foreign tax amount $586 with the pay date of 12/31/2024, which is another indication that TurboTax will likely generate Form 1116.
10. Keep going until the foreign tax credit part is concluded.
11. The resulting tax return does not include Form 1116. However, if the foreign tax amount is $601 or more, it does include it.